Novo Nordisk Shares Under Pressure as Market Position Weakens

Novo Nordisk DK0062498333

Investor confidence in Novo Nordisk has been shaken following a significant downgrade from Argus Research, compounding concerns after a steep share price correction this year. Market experts point to eroding market share for the pharmaceutical giant's key revenue drivers, the drugs Wegovy and Ozempic, alongside disappointing clinical trial results, signaling a potential challenge to the company's former dominance.

The competitive landscape is intensifying, with rival Eli Lilly applying considerable pressure. Lilly's treatments, Mounjaro and Zepbound, are gaining substantial traction in both the diabetes and obesity markets. This shift is exemplified by sales data from India, where Mounjaro's revenue surpassed competing products in October, significantly outselling Wegovy by volume.

Further dampening the outlook are several internal challenges:
* Patent Expiry: The patent protection for semaglutid, the active ingredient in several Novo Nordisk drugs, is set to expire in India in March 2026. This opens the door for lower-cost generic competitors to enter the market.
* Pricing Pressures: To maintain competitiveness, the company has already been forced to implement price reductions, including in India and through introductory offers in the United States.
* Trial Results: Recent Phase 3 EVOKE study data, which tested semaglutid as a treatment for Alzheimer's disease, failed to deliver the hoped-for results in slowing the progression of the illness.

The cumulative effect of these headwinds is starkly visible in the stock's performance. Since the start of the year, Novo Nordisk's share price has plummeted by over 53 percent, currently trading near 40 euros and hovering just above its 52-week low.

Analyst Downgrade Adds to Selling Pressure

The stock faced renewed selling pressure on Monday after Argus Research lowered its rating from "Buy" to "Hold." Analyst John Eade justified the move with a clear warning regarding the deteriorating competitive position of the Danish pharmaceutical leader. He noted that experts are observing declining market shares for both the weight-loss injection Wegovy and the diabetes medication Ozempic. In a separate action, JPMorgan significantly reduced its price target for Novo Nordisk to 350 Danish Kroner, although it maintained its overarching "Buy" recommendation.

Upcoming Catalysts and Financial Calendar

Market attention now turns to early February 2026, when Novo Nordisk is scheduled to release its full-year financial results. In the interim, key developments will likely dictate the share price trajectory. These include the pending FDA decision on the oral semaglutid tablet and the execution of a cost-saving program announced in September, which involves cutting approximately 9,000 positions.