Novo Nordisk's Market Rollercoaster: The Weighty Impact of Price Pressure

Shares of Novo Nordisk tumbled as much as 6% on Friday before making a slight recovery, continuing a downward trend spurred by pressures to reduce drug prices. The pharmaceutical sector saw declines after U.S. President Donald Trump demanded 17 major firms, including Novo Nordisk, to lower prices.

On Tuesday, Novo Nordisk reduced its sales growth forecast for 2025 amid rising competition from generic versions of its weight-loss drug, Wegovy, and appointed Maziar Mike Doustdar as the new CEO. Previously Europe's top-listed firm with a valuation of $650 billion, Novo's market cap now stands at $214.5 billion due to significant share losses.

Despite Novo's commitment to making medications affordable, shares continued to suffer, marking a 30% loss for the week. The European healthcare index also saw drops, as investors feared further downgrades. Analyst Per Hansen noted that the repricing reflects multiple layers, including competition and policy shifts in the U.S. drug market.

(With inputs from agencies.)