Novo Nordisk stock price has suffered a harsh reversal this year as the company’s woes have escalated. It plunged to a low of DKK 267.50 on Monday, down by over 70% from its highest point in 2024, with its market cap falling to DKK 4.64 trillion to DKK 1.24 trillion today.
Why Novo Nordisk stock has crashed
Novo Nordisk, the biggest company in Denmark, has been in a strong sell-off this year as its growth has stalled, pushing the management to lower its guidance several times.
The most recent woe happened on Monday when the stock plunged by over 6% after the company delivered some bad news. In a statement, the management said that its drug did not offer substantial benefits in the treatment of Alzheimer’s disease.
This trial tested whether semaglutide would slow the progression of Alzheimer’s, a disease that is expected to affect millions of people as more of them age. A success at the trial would have been a good thing for the company by introducing a new avenue to make money.
Still, the fact that the trial failed was not a major shock to many analysts, who believed that the trial was a long shot.
Novo’s business is facing major headwinds
The new headwind came at a time when the company’s business is not doing well. Competition to its popular drugs like Wegovy and Ozempic has affected its business, with the company blaming company compounders like Hims & Hers for its woes.
As a result, it has been forced to slash its guidance several times. The most recent results showed that its sales rose by 12% in the first nine months of the year, with its operating profit rising by 5% to DKK 95.9 billion.
This growth was driven by its performance in the United States, which increased by 12%, with the Diabetes and Obesity care businesses rising by 12%.
Most importantly, the company lowered its full-year revenue guidance again. It now expects that its annual sales will be between 8% and 11%. The management said:
“While we delivered robust sales growth in the first nine months of 2025, the lower growth expectations for our GLP-1 treatments have led to a narrowing of our guidance.”
The company faces major headwinds going forward. The most notable one is that competition in weight loss has continued growing. Its most significant competition is coming from Eli Lilly, a company that has become a $1 trillion firm. Its Mounjaro product is valued at over $16.8 billion, a figure that may hit between $55 billion and $78 billion by 2032.
Pfizer will also become a major competitor after it acquired Metsera in a $10 billion deal. Metsera, which Novo Nordisk wanted, is expected to become a major player in the obesity treatment industry.
Novo Nordisk stock price analysis
The weekly chart shows that the Novo Nordisk share price has been in a strong bearish trend in the past few months. It has plunged from a high of DKK 996 in June last year to DKK 285 today.
A closer look shows that it has formed a descending channel, which is made up of a series of lower lows and lower highs. It has moved below the 50-week and 200-week Exponential Moving Averages (EMA).
Therefore, the stock will likely continue falling as sellers target the key support level at DKK 200. This view will be invalid if it moves above the important resistance level at DKK 394.
The post Here’s why the Novo Nordisk stock has crashed by 70% appeared first on Invezz