Novo Nordisk Faces Swedish Reimbursement Challenge and Shifts US Legal Strategy

Novo Nordisk appeals Sweden's Wegovy reimbursement denial, withdraws US patent lawsuit. Reports strong 2025 revenue growth but shares face pressure.

The Swedish Dental and Pharmaceutical Benefits Agency (TLV) has rejected the inclusion of Novo Nordisk's weight-loss drug Wegovy in the country's reimbursement scheme, prompting the Danish pharmaceutical giant to file a formal appeal. The company aims to secure access for patients aged 12 and above within the Swedish healthcare system, arguing the treatment is cost-effective for its target demographic.

Legal Maneuver in the United States

In a separate development, Novo Nordisk has withdrawn a patent lawsuit against the US telehealth provider Hims & Hers Health. This move comes as Hims & Hers shifts its business model away from producing its own compounded versions of weight-loss medications. Instead, the company plans to distribute the FDA-approved branded drugs, Ozempic and Wegovy, directly. The dismissal of the litigation facilitates this strategic pivot for the telemedicine firm.

TLV's Rationale for Rejection

The Swedish agency's decision centers on concerns regarding the practical enforcement of prescription guidelines. Authorities expressed skepticism that physicians would consistently adhere to the strict criteria, which mandate prescribing Wegovy only to patients with a high body mass index (BMI) and specific comorbid conditions. Novo Nordisk contests this view and is challenging the ruling.

Financial Performance and Market Sentiment

Operationally, the company continues to show robust growth. For the full year 2025, Novo Nordisk reported revenue of 309.1 billion Danish kroner, representing a 10 percent increase at constant exchange rates. Its obesity care segment was a standout performer, surging 31 percent to 82.3 billion DKK.

Despite these strong fundamentals, the company's shares have faced significant headwinds. Since the start of the year, the stock has declined approximately 25 percent and is currently trading well below its key moving averages. The average analyst consensus currently rates the stock as "Hold," with a price target of $49.93.

Institutional investor activity presents a mixed picture. Bank of America reduced its stake by about nine percent in the third quarter. Conversely, Flow Traders increased its holding by more than 500 percent, though this expansion was from a notably smaller initial position.

Shareholders can expect a dividend of $1.2751 per share, with an ex-dividend date set for March 30, 2026. The payment is scheduled for distribution on April 8, 2026.