Novo Nordisk Stock Drops 3.03% Amid Wegovy Prescription Slowdown

On April 25, 2025, Novo Nordisk's stock experienced a 3.03% drop in pre-market trading, reflecting investor concerns and market dynamics.

Novo Nordisk, a Danish pharmaceutical company, has seen its stock price decline due to several factors. The company's annual sales guidance has been repeatedly raised since the launch of its popular weight loss drug Wegovy in 2021. However, recent data from the U.S. has shown a slowdown in prescriptions, raising doubts about the company's ability to maintain its strong momentum. This has led some investors and analysts to question whether the company's growth trajectory is sustainable.

In February, Novo Nordisk projected a 16-24% increase in sales for 2025 under constant currency conditions, a significant slowdown from previous years. Analysts and investors are now questioning whether even this target is achievable, with some predicting that the company may lower its guidance when it reports its first-quarter earnings on May 7. Novo Nordisk has stated that it has increased the supply of Wegovy in the U.S. to meet rising demand, and that its guidance already reflects this adjustment.

However, data from IQVIA shows that the weekly prescription volume for Wegovy in the U.S. has stabilized since mid-February. Meanwhile, Eli Lilly's competing weight loss injection Zepbound has seen a surge in prescriptions, with 128,000 more prescriptions than Wegovy in the week ending April 11. Both Novo Nordisk and its competitors face the risk of their products being caught up in the trade war initiated by former U.S. President Trump.

Despite a consensus forecast from 25 analysts at the London Stock Exchange Group (LSEG) predicting a 19% increase in Novo Nordisk's sales for 2025, some analysts are more pessimistic. American Bank analysts expect the company to lower its guidance to 14-22%, which would be the weakest growth rate since 2021. Lukas Leu, an investment manager at Bellevue Asset Management, which holds Novo Nordisk shares, expressed caution, stating that a guidance cut is a real possibility.

In the intensely competitive weight loss drug market, investors are concerned about Novo Nordisk's ability to compete with Eli Lilly. Additionally, the company's new drug CagriSema has underperformed in clinical trials, leading to a 45% drop in market capitalization since early December 2024. Some analysts believe that if the U.S. Food and Drug Administration (FDA) strictly enforces its ban on generic drugs, prescriptions for Wegovy and Ozempic could rebound, potentially benefiting Novo Nordisk's branded products.