Why Shares of Novo Nordisk Stock Collapsed This Week

Shares of Novo Nordisk (NYSE: NVO) were down implicit 20% this week arsenic of this penning connected Friday, February 6th, astatine 11:00 AM EST, according to information from S&P Global Market Intelligence. The famed drugmaker has struggled implicit the past 2 years owed to dense contention and pricing unit for weight-loss drugs. It is besides trying to woody with assertive contention from Hims & Hers.

Right now, Novo Nordisk banal is down 68% from all-time highs acceptable successful aboriginal 2024. Here's wherefore it was falling again this week, and whether it is simply a bargain today.

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Novo Nordisk reported net earlier this week, connected February 3rd. Its financials looked solid, with gross increasing 10% twelvemonth implicit twelvemonth successful changeless currency successful 2025, contempt dense unit from different weight-loss drugmakers specified arsenic Eli Lilly.

However, investors were spooked by the anemic 2026 guidance, which calls for a 5%-13% decline successful income and net compared to 2025. There is mounting contention for weight-loss drugs, including the caller TrumpRx website, which offers discounted versions of these drugs, specified arsenic the company's Wegovy product. Even though the institution had its oral weight-loss pill approved by the Food and Drug Administration (FDA) and should spot measurement increases, declining prices volition beryllium a deed to income and net successful 2026.

What's more, successful immoderate countries, generic versions of weight-loss drugs are already connected the market, which absorption expects volition devour into sales. Lastly, to adhd adjacent much chaos to the situation, telehealth marketplaces Hims & Hers launched a knockoff of Wegovy and began selling it for conscionable $49 a month. While it is highly apt the FDA volition rapidly whip Hims & Hers into shape, much uncertainty is ne'er thing that Wall Street is looking for.

This is the worst terms drawdown successful Novo Nordisk's history, going backmost to 1990. Despite this, the banal has produced a cumulative full instrumentality of implicit 30,000% for shareholders since 1990, making it 1 of the best-performing stocks of the past fewer decades.

Novo Nordisk is simply a methodical business, banking connected dependable innovations implicit the past 100 years erstwhile it archetypal invented Insulin. Weight-loss drugs are its caller blockbuster, facing contention contiguous but inactive poised to beryllium a immense marketplace implicit the adjacent fewer decades.

At a price-to-earnings ratio (P/E) of 13, investors are heavy discounting the likelihood that Novo Nordisk volition support its marketplace stock successful weight-loss drugs, and they wholly discount immoderate aboriginal cause innovations successful its pipeline. If you similar this business, present whitethorn beryllium a bully clip to bargain the dip connected Novo Nordisk stock.