Novo Nordisk Shares Plunge 18% After CEO Warns of Painful US Price Cuts
Updated (2 articles)
Share price collapses after profit warning On February 4, 2026 Novo Nordisk’s stock dropped 18% after the company forecast up to a 13% decline in profit and sales for the year, alarming investors and prompting a sharp sell‑off [1]. The warning highlighted the impact of upcoming price reductions and heightened competitive pressures. Analysts noted the move could signal broader challenges for the GLP‑1 market.
CEO labels pricing pressure unprecedented and painful Chief executive Maziar Mike Doustdar told CNBC’s “Early Edition Europe” that the current environment of forced price cuts is “unprecedented” and “painful,” describing the Wegovy reduction as a strategic investment for future growth [1]. He warned that the share price would dip before any recovery, emphasizing the company’s long‑term outlook despite short‑term pain. Doustdar’s comments underscored the tension between maintaining margins and complying with policy demands.
US “most‑favoured‑nation” pact sets new drug price caps A deal announced with President Donald Trump under the TrumpRx platform aims to lower American prices for GLP‑1 drugs to $350‑$250 per month for Wegovy and Zepbound, and $245 for Medicare‑covered products [1]. The agreement targets a “most‑favoured‑nation” pricing model, forcing Novo Nordisk to adjust its pricing structure across the U.S. market. The company presented the cuts as an investment to secure market share amid looming competition.
Patent expiries and copycat competition threaten sales Indian and Chinese patents on semaglutide are set to expire in “a few months,” prompting an estimated 2% hit to group sales and opening the door for low‑cost GLP‑1 copies, some of which carry safety warnings [1]. Novo Nordisk anticipates increased pressure from generic manufacturers as the exclusivity period ends. The firm is preparing regulatory and market responses to mitigate the impact.
CFO stresses market expansion rather than price war Finance chief Karsten Munk Knudsen asserted that Novo Nordisk is “not in a race to the bottom,” focusing on rational market expansion while acknowledging a modest sales impact from the price cuts [1]. He defended the pricing strategy as sustainable and aimed at preserving long‑term profitability. In contrast, Eli Lilly’s shares rose after reporting stronger‑than‑expected profits, highlighting divergent outcomes within the sector.
Timeline
Dec 23, 2025 – The S&P 500 closes at a record 6,909.79, and Novo Nordisk’s stock jumps 7.3% after U.S. regulators approve the first oral Wegovy pill, marking the debut of an obesity treatment in pill form and sparking optimism for expanded market reach [2].
Feb 4, 2026 – Novo Nordisk shares tumble 18% as CEO Maziar Mike Doustdar warns that the “price‑cut environment is unprecedented and painful,” calling the Wegovy reduction an investment for the future and projecting up to a 13% decline in profit and sales this year [1].
Feb 4, 2026 – The company announces a U.S. “most‑favoured‑nation” pact under the TrumpRx platform, targeting monthly prices of $350‑$250 for Wegovy and Zepbound and $245 for Medicare‑covered products, signaling a major shift in GLP‑1 pricing strategy [1].
Feb 4, 2026 – CFO Karsten Munk Knudsen says Novo Nordisk is “not in a race to the bottom,” emphasizing rational market expansion over a price war while acknowledging a modest sales impact from the upcoming cuts [1].
Feb 4, 2026 – Patent expiries for Indian and Chinese semaglutide patents loom in “a few months,” forecasting a 2% hit to group sales and opening the market to low‑cost GLP‑1 copies that carry safety warnings [1].
Mid‑2026 (expected) – Novo Nordisk plans to implement the agreed U.S. price caps, a move that could reshape revenue streams and intensify competition as generic GLP‑1 products enter the market following the imminent patent expiries [1].