Novo Nordisk Faces Investor Scrutiny Amid U.S. Pricing Pressure

Novo Nordisk faces revenue pressure from U.S. drug discounts, but counters with higher dividends and buybacks. Shareholders vote as stock nears 52-week low.

Shareholders of Danish pharmaceutical leader Novo Nordisk are gathering in Copenhagen for the company's annual general meeting, with a challenging market backdrop setting the tone. The firm is confronting significant price erosion for its flagship products, driven by a new agreement with U.S. authorities that mandates substantial discounts and clouds its revenue outlook.

Financial Performance Feels the Impact

A pivotal "Most Favored Nations" pact with the U.S. government is at the core of the current pressures. This deal has drastically reduced the price for the blockbuster drugs Wegovy and Ozempic in direct federal sales, cutting the cost from over $1,000 to approximately $350 per month. The financial consequences are already materializing. For the fourth quarter of 2025, currency-adjusted revenue contracted by two percent, with operating profit declining by four percent. Company leadership anticipates this trend will intensify throughout the current year, citing Medicaid reductions and fierce competition from rival Eli Lilly.

Capital Return Initiatives Provide Some Support

In a move to balance these headwinds, Novo Nordisk is maintaining its commitment to shareholder returns. The agenda for the meeting includes formal approval of an increased dividend of 7.95 Danish kroner, representing a 2.6 percent rise. For shares listed in Copenhagen, the ex-dividend date is set for tomorrow, March 27. Concurrently, an ongoing share repurchase initiative, authorized for up to 15 billion kroner in total, offers additional support for the equity. Shareholders are also voting on board renewals, where current Chairman Lars Rebien Sørensen is expected to be reconfirmed, alongside the election of three new members.

Pipeline Development Offers a Long-Term Path

The company's research and development pipeline is viewed as the primary engine for future growth. Chief Executive Mike Doustdar has expressed strong confidence in the upcoming launch of the new combination drug CagriSema and the hemophilia therapy Mim8. Furthermore, critical clinical trial results for treatments targeting sickle cell disease and chronic kidney conditions are pending. The sustained pricing pressure is vividly reflected in the stock's performance: since the start of the year, the share price has shed roughly 29 percent of its value, currently trading at €31.68 and hovering just above its 52-week low. The active share buyback program, whose current tranche runs until May 4, stands as the most immediate buffer against further declines.