Amid Wegovy's EU Endorsement, Novo Nordisk Grapples with a Rising Tide of Litigation and a Critical US Pharmacy Decision

EU approves higher-dose Wegovy, but CVS Caremark favors Eli Lilly drugs, legal claims over blindness risk mount, and shares fall 40% from highs.

The Danish pharmaceutical heavyweight has secured a major regulatory recommendation in Europe, but the celebration is tempered by a potent cocktail of legal, commercial, and competitive pressures that are reshaping its outlook. On Monday, the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) gave the green light to Wegovy at a higher 7.2?mg dose, citing a maximum weight loss of 20.7% in clinical trials — a figure that rises to nearly 28% among early responders. The move is designed to fortify Novo Nordisk’s grip on the lucrative obesity market, which could surpass $100 billion globally by 2030.

Yet across the Atlantic, the picture is far less rosy. As of June 1, CVS Caremark has updated its formularies to place Eli Lilly’s oral drug Foundayo on its preferred list, stripping Wegovy of its previous exclusive status. From October, Lilly’s injectable Zepbound will also gain a wider preferred position. The pharmacy benefit manager’s decision erodes one of Novo Nordisk’s strongest competitive advantages — a privileged spot on the largest US formulary — and opens the door to greater price and volume rivalry in the GLP?1 segment.

The stock has felt the impact. After closing at €37.90 on Monday, shares edged to €38.15 by mid?week, leaving them down 15.17% since January and roughly 40% below their level a year ago. The 52?week high of €70.13 now seems a distant memory. Technically, the near?term picture is also strained: the Relative Strength Index sits at 71.6, signalling short?term overextension, while the share price remains 9.54% below its 200?day moving average.

Compounding the commercial headwinds is a growing legal storm. A wave of product?liability lawsuits, filed by firms including Parker Waichman LLP, alleges that Wegovy and Ozempic have caused non?arteritic anterior ischaemic optic neuropathy (NAION) — an irreversible eye condition that can lead to permanent blindness. One lawsuit was lodged on May 29 in the Eastern District of Pennsylvania, citing Harvard’s Mass Eye and Ear study that found semaglutide users were four times more likely to develop NAION. The cases are being consolidated under Multi?District Litigation No. 3094, which already contains thousands of claims related to gastrointestinal and ophthalmic injuries.

Meanwhile, Novo Nordisk continues to advance its pipeline, hoping that scientific progress can counterbalance the negative sentiment. At the upcoming ADA Scientific Sessions in New Orleans (June 5–8), it plans to present 40 abstracts, including Phase 3 data for CagriSema and Phase 2 results for Zenagamtide. These readouts could provide a near?term catalyst. Separately, a study published on May 31 in Fertility and Sterility showed that women achieving at least 10% weight loss on semaglutide experienced an average 51% drop in testosterone levels — a potential avenue for treating polycystic metabolic ovarian syndrome (PMOS). Novo Nordisk welcomed the independent research but has no immediate plans to pursue a formal indication.

On the valuation front, the stock appears deeply discounted by some measures. The trailing price?to?earnings ratio of 10.32 is roughly 71% below its five?year median of 35.4. The GF?Value model estimates fair value at $137.86, well above current prices, and the market capitalisation stands at about $195.23 billion. Goldman Sachs, however, has set a price target of $41 and rates the shares “Neutral,” reflecting ongoing caution toward the sector.

The company is also rationalising its portfolio. It sold the Parkinson’s cell?therapy unit STEM?PD to Cellular Intelligence, a venture backed by Mark Zuckerberg, retaining an equity stake and future milestone payments. In the obesity arena, it continues to support partners such as Lexicon Pharmaceuticals, which reported Q1 2026 revenue of $21.1 million — primarily driven by $20 million in milestone payments from Novo Nordisk — while the oral candidate LX9851 remains in Phase 1 testing.

To signal confidence, management launched a DKK 15 billion share buyback programme in February 2026, which is running through early 2027. So far, the company has repurchased roughly 35 million B?shares, equivalent to about 0.8% of total capital. Yet the buyback has done little to arrest the decline, with the stock still trading 46% below its 52?week peak.

The road ahead is increasingly contested. Novo Nordisk now faces not only the erosion of its CVS Caremark exclusivity but also the emergence of oral GLP?1 therapies from Eli Lilly, which offer patients a convenient alternative to injections. With thousands of lawsuits mounting and a critical pipeline data dump due in early June, the next few weeks will be pivotal in determining whether the EU endorsement can offset the gathering headwinds in the US.