Novo Nordisk Sheds 15% After Shock Sales Drop Forecast[Stocks](https://moneymorning.com/category/article/stocks/) # Novo Nordisk Sheds 15% After Shock Sales Drop Forecast  by Rich Duprey  February 4, 2026  Share it: Amid intensifying competition in the weight-loss drug market, **Novo Nordisk**'s ( [NVO](https://moneymorning.com/stocks/nvo/)) early January release of its oral GLP-1 version sparked hope for a major turnaround at the Danish pharmaceutical giant. The pill form of Wegovy – building on the success of its injectable counterpart – promised expanded access and renewed growth momentum after a challenging period marked by supply constraints and rival pressures. However, the market was stunned when NVO released its 2025 full-year results a day early, revealing weaker-than-expected 2026 guidance. The company forecasts adjusted sales and operating profit to decline between 5% and 13% at constant exchange rates, marking the first sales drop since 2017 and sending shares tumbling. ## Headwinds Driving the Downturn The projected decline stems largely from U.S. market pressures, including aggressive price discounts on GLP-1 drugs like Ozempic and Wegovy. A "most favored nations" agreement with the U.S. government aims to lower costs for patients but is squeezing NVO's revenues amid rising scrutiny on drug pricing. Additionally, semaglutide – the active ingredient in these blockbusters – faces patent expirations in key markets like China, Brazil, and Canada, paving the way for cheaper generics that could erode market share. Competition has ramped up significantly, with **Eli Lilly** ( [LLY](https://moneymorning.com/stocks/lly/)) leading the charge. LLY's Zepbound has already surpassed Wegovy in U.S. prescriptions, capturing a larger slice of the booming obesity treatment sector. Reduced Medicaid coverage for weight-loss drugs and the absence of one-time positive adjustments from 2025 further compound the strain. LLY just announced its own results this morning, reporting blowout numbers as Zepbound and Mounjaro contributed to a 43% increase in revenue and 50% increase in volume, adding volatility to the space.  Compounding investor concerns, NVO announced two key executive departures during this transitional phase. U.S. operations head Dave Moore is stepping down for personal reasons, with Jamey Millar from Optum taking over. Meanwhile, product and portfolio strategy executive Ludovic Helfgott is leaving for new opportunities, replaced by Hong Chow from **Merck KGaA**. These changes, occurring just six months into new CEO Mike Doustdar's tenure, have fueled perceptions of instability, putting additional downward pressure on the stock. ## Positive Signals for Long-Term Recovery Despite the gloom, NVO highlighted several encouraging developments. The oral version of Wegovy is experiencing rapid uptake since its January launch, with strong demand through self-pay and telehealth channels. Notably, about 80% of oral users are new to Wegovy, indicating minimal cannibalization of the injectable form's sales. Instead, it's expanding the overall market by attracting patients who prefer pills over injections, a promising sign for sustained growth in the GLP-1 category. The company is also betting on volume increases to offset pricing headwinds, with plans to ramp up R&D investments, including its recent acquisition of Akero Therapeutics. Prior cost optimizations, such as layoffs, will fund these efforts, and NVO assumes continued expansion in the global GLP-1 market to drive future revenues. ### Bottom Line NVO's stock has plummeted 40% over the past year as LLY's Zepbound chipped away at Wegovy's dominance, and it's dropping another 5% in premarket trading today. This dip could present a buying opportunity for patient investors, but caution is warranted – LLY is poised to [launch its own oral GLP-1 drug](https://moneymorning.com/2025/04/21/weight-loss-in-a-pill-will-make-eli-lilly-a-1-trillion-stock/) soon, likely intensifying the rivalry. As CEO Doustdar put it, NVO is enduring short-term pain for long-term gain. While it's a solid long-term hold in the thriving obesity drug arena, more near-term volatility may offer even better entry points. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Comments This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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