The Danish pharmaceutical giant is confronting one of its most severe crises in recent memory. A perfect storm of unfavorable developments has sent Novo Nordisk’s stock into a sustained downward spiral. With a dramatic price reduction for its blockbuster medications, a failed multi-billion dollar acquisition attempt, and its fourth profit warning this year, investors are questioning whether the company’s remarkable growth story is reaching its conclusion.
Earnings Forecasts Diminished Once Again
The most recent quarterly report painted a bleak picture, with both earnings per share and revenue falling short of market expectations. More significantly, management downgraded its full-year outlook for the fourth time in the past twelve months.
Key financial adjustments include:
* Reduced 2025 revenue growth projection, now expected to be only 8-11%, down from the initial forecast of 8-14%.
* A concurrent downward revision of the profit forecast.
* The primary cause is identified as slowing growth for GLP-1 treatments targeting diabetes and obesity.
* Intensifying competitive pressure, particularly from rival Eli Lilly, is a major contributing factor.
The company’s market valuation has contracted sharply as it loses its dominant grip on a market segment that was, until recently, considered a guaranteed growth engine.
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US Pricing Agreement Squeezes Revenue
A major shockwave originated from Washington, D.C. Novo Nordisk, along with competitor Eli Lilly, agreed to significantly lower the prices of its popular GLP-1 weight-loss drugs in the United States. This arrangement with the US government affects programs including Medicare and Medicaid, as well as cash-paying customers, and will substantially reduce the monthly cost for patients.
The company has acknowledged that the resulting revenue decline will be in the “low single-digit” percentage range and will hinder its global growth momentum in the coming year. Financial markets reacted immediately with a severe sell-off. What was likely intended as a political concession is now emerging as a direct pressure on the firm’s profit margins.
Pfizer Secures Key Acquisition Target
In another setback for shareholders, Novo Nordisk officially withdrew from the bidding war for the acquisition target Metsera. The specialist in obesity medications was ultimately acquired by Pfizer for $10 billion, representing a stinging defeat in the crucial battle to secure future drug pipelines.
Both pharmaceutical companies had repeatedly improved their offers, but in the end, Novo Nordisk pulled out. This failed acquisition not only constitutes a strategic reversal but also a loss of prestige within the fiercely competitive weight-loss pharmaceutical market. The company’s shares continue to struggle against a powerful downward trend, with no clear bottom in sight.
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