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Novo Nordisk shares tumbled nearly 20 per cent on Wednesday after the pioneer of weight-loss drugs warned of a double-digit fall in sales amid a “painful” reduction in prices.
The Danish drugmaker faced “unprecedented pricing pressure”, Mike Doustdar, chief executive, said on Wednesday after its shares dropped 18 per cent in response to a warning the day before that sales could decline up to 13 per cent in 2026.
Novo forecast that the decline in sales this year could be 5 to 13 per cent, much steeper than analysts’ estimates of a 2 per cent fall as it faced a crowded obesity-treatment market and a squeeze on the pricing of its drugs.
The declining sales guidance for 2026 mainly reflected falling US prices associated with its deal with the Trump administration under the Most Favored Nation agreement, said Doustdar.
The pricing pressure was “painful but we hope it would be an investment for our future”, he said, adding that the company hoped the price declines in the US “would translate into more affordability and more people being able to pick up our products and we have seen this with the pill”.
The company delivered the warning as it announced net sales of DKr309bn ($48.9bn) in 2025, a 10 per cent increase against the previous year at constant exchange rates, buoyed by growth in the US and its international operations.
Novo’s financials contrasted with weight-loss rival Eli Lilly, which said on Wednesday morning that sales of its two top obesity drugs more than doubled in the last three months of 2025.
Indianapolis-based Lilly said worldwide sales of its two weight-loss shots increased by 110 per cent and 122 per cent in the fourth quarter. The company estimated its 2026 sales would hit at least $80bn, up from $65bn last year.
Lilly’s shares jumped more than 7 per cent in pre-market trading.
Novo reported sales of its popular obesity and diabetes treatments had risen 10 per cent to DKr289.5bn, driven largely by a rise in obesity care sales.
Operating profit declined 1 per cent in local currency, although it increased 6 per cent at constant exchange rates to DKr127.7bn. The company said profit had been weighed down by the DKr8bn in costs incurred last year as part of “company-wide transformation” efforts.
Novo’s share price has tumbled about 70 per cent since it was briefly Europe’s most valuable company in June 2024, as it has lost share in the crucial US market.
The daily pill marks a new era in weight-loss treatment as companies seek to widen their appeal to patients. However, Jefferies analysts said in a note last month that despite a strong start for the pill, there had not been an “expansion of Novo’s overall GLP-1 volumes following launch, and weekly prescriptions still remain below pre-Christmas highs”.
The pressure on the price of Novo’s blockbuster drugs comes after it agreed last year to slash the cost of injectable Ozempic and Wegovy from at least $1,000 a month to $350 when purchased on TrumpRx, the US president’s new direct-to-consumer website.
The White House said at the time that weight-loss drugs would also be made cheaper for Americans enrolled in the Medicaid and Medicare government healthcare programmes.
Novo endured a turbulent 2025, with Doustdar replacing former chief executive Lars Fruergaard Jørgensen following a slump in the company’s share price as it lost share of the obesity drug market to US rival Eli Lilly, which last year briefly became the world’s first pharmaceutical company to hit a $1tn market valuation.
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There was also a board clearout last year when the chair and six independent directors were forced out following a dispute with Novo Nordisk Foundation, the Danish group’s majority shareholder.
Doustdar has been tasked with reviving the group’s fortunes and assuaging investor concerns over its pipeline.
His first big act was a hostile effort to hijack Pfizer’s bid for Metsera, an obesity-focused biotech. The US company eventually won the battle after being forced to raise its offer to nearly $10bn.
The company this week released late-stage trial results of CagriSema, a weekly combination therapy injection that delivered weight loss of up to 14.2 per cent in patients with type 2 diabetes — similar to previous trials of the drug, which has disappointed investors in the past.
Novo also announced on Tuesday that the vice-presidents of its US operations and its product and portfolio strategy were stepping down, in a sign that the group is seeking to retool its strategy.