Novo Nordisk Shares Sink After Sales Outlook Misses As US GLP-1 Competition Intensifies

Novo Nordisk's ADRs experienced a significant drop following the announcement of a disappointing full-year outlook. The company anticipates a sales decline between 5% and 13% at constant exchange rates. This forecast is considerably worse than the projected 1.3% decline expected by analysts. The company's operating profit is also expected to decrease by a similar margin. Novo Nordisk last saw annual sales decline in 2017 due to insulin price competition. This time, the company faces intensifying competition from Eli Lilly's Zepbound and generic versions of Ozempic. Trading was briefly halted before the stock resumed trading, experiencing a 13% plunge. The share price has plummeted approximately 64% from its mid-2024 peak. Despite hopes for recovery, the recent forecast dampened those expectations. A Goldman analyst had previously suggested buying the dip in obesity drug stocks. This guidance was given just before the unfavorable outlook was released. The market reacted negatively, highlighting the challenges facing the company.