Novo Nordisk shares plunged after the drugmaker unexpectedly pre-released its 2026 outlook, catching markets off guard just as signs of recovery were emerging. The move triggered a sharp sell-off and reignited concerns over the company’s near-term growth trajectory.
The stock dropped around 17% in Copenhagen early Wednesday, mirroring losses in U.S. trading a day earlier and erasing its year-to-date gains. Investors reacted swiftly to guidance that came in well below expectations.
Chief executive Mike Doustdar sought to temper optimism, warning that conditions are likely to deteriorate before improving. He pointed to significantly lower U.S. pricing for Wegovy, the company’s blockbuster weight-loss drug, as a major headwind.
Novo forecast both sales and operating profit to decline by 5% to 13% in 2026, a far steeper drop than analysts had anticipated. Some investors had hoped the outlook represented a conservative “kitchen sink” forecast, but similar assumptions last year failed to materialize.
Pressure in the U.S. market remains intense, driven by competition from cheaper compounded alternatives and rising rivalry from Eli Lilly. While the recent launch of a Wegovy pill exceeded internal expectations, executives acknowledged that price cuts on the core business currently outweigh the early success of the new format.
The company is also navigating leadership changes and upcoming patent expiries outside the U.S., adding to uncertainty. Shares had already fallen nearly 50% in 2025, marking one of the toughest periods in Novo Nordisk’s history.
Despite the turmoil, management rejected the notion of a crisis. Doustdar said recent challenges have strengthened the company’s resilience, even as analysts debate whether the recovery ahead will be swift or prolonged.
