Novo Nordisk Stock: For the past few days, Denmark giant pharmaceutical company Novo Nordisk has been in the news, but the reason is not good. The company shares have seen a huge decline, which has blown the senses of investors. Novo Nordisk, known for its weight-loss drugs Ozempic and Wegovy, is now going through a difficult phase. Novo Nordisk Stock has declined by about 20 to 30 percent, and increasing competition and declining sales have a big hand behind this. Let’s understand this news a little more closely and know what is the matter.
The company recently lowered its 2025 sales and profit expectations. Earlier Novo Nordisk had forecast sales growth of 13 to 21 percent, but now it has been reduced to 8 to 14 percent. Operating profit expectations have also come down from 16 to 24 percent to 10 to 16 percent. After this news, investors panicked, and a massive sell-off began in Novo Nordisk Stock. The result? The company market value fell by about $93 billion. This decline was so huge that Novo Nordisk shares fell sharply in the stock market.
Pressure of competition and counterfeit drugs
Novo Nordisk Stock has been most affected by increasing competition and the availability of counterfeit drugs in the US. The company weight-loss drugs Ozempic and Wegovy were very popular in the US earlier, but now their demand is decreasing. A major reason for this is cheap counterfeit drugs, called compounded drugs. These drugs are based on semaglutide, just like Novo drugs, but they are being sold without FDA approval. Novo Nordisk has demanded the ban of these fake drugs, as they are not only harming the company sales but can also be dangerous for patients. The FDA has also warned that these drugs do not contain the right ingredients, due to which patients are facing side effects like nausea, vomiting and stomach pain.
Apart from this, rival companies like Eli Lilly have also given sleepless nights to Novo Nordisk. Eli Lilly drugs Zepbound and Mounjaro have made a strong hold in the market. In a recent trial, Zepbound surpassed Wegovee, in which Zepbound showed 20.2 percent weight loss in 72 weeks, while Wegovee got stuck at just 13.7 percent. This news proved to be worse for Novo Nordisk Stock, as investors’ confidence was shaken.
Expectations from the new CEO
Amidst all this, Novo Nordisk has appointed its new CEO Maziar Mike Dosdar, who will take charge from August 7, 2025. Maziar has been with the company since 1992 and has a long experience of international operations. Under his leadership, the company international sales doubled to $17.3 billion in 2024. Investors hope that Maziar can take Novo Nordisk Stock to new heights again. The company has reduced the price of Wegovy by 50 percent in the US and invested in new manufacturing plants to overcome the supply shortage.
However, the path is not easy. Analysts say that Novo Nordisk Stock may see more fluctuations, but the company strategy and the experience of the new CEO can bring improvement in the future. Investors are advised to keep an eye on this stock, as Novo Nordisk is still a big name in the healthcare sector.
