Novo Nordisk Plunges 7.47% as Eli Lilly's Orforglipron Shines

On April 17, 2025, Novo Nordisk's stock experienced a significant drop of 7.47% in pre-market trading, reflecting investor concerns and market dynamics.

One of the primary factors contributing to this decline is the impressive performance of Eli Lilly's oral weight loss drug, Orforglipron, in its phase 3 clinical trial. The trial results showed that Orforglipron achieved weight loss outcomes comparable to or even surpassing those of Novo Nordisk's flagship product, Ozempic. Patients taking Orforglipron lost an average of 16 pounds, or 7.9% of their body weight, while Ozempic users lost approximately 6% of their body weight at the highest dose. This direct competition has raised concerns about Novo Nordisk's market position.

Additionally, Novo Nordisk has faced a series of setbacks in recent months. The company's weight loss drugs, Wegovy and Ozempic, have seen lower-than-expected demand. Furthermore, the mid-stage trial results for the oral weight loss drug, monlunabant, were disappointing, and another injectable drug, CagriSema, showed subpar data. These challenges have put Novo Nordisk under significant pressure, leading to a decline in its market value.

Analysts have also adjusted their ratings and price targets for Novo Nordisk. BMO Capital Markets downgraded the stock from "outperform" to "market perform" and slashed the price target from $105 to $64. This adjustment reflects the growing competition and the potential erosion of Novo Nordisk's market share.