Novo Nordisk shares hit lowest level in over 3-years

Published 01/08/2025, 12:06
© Reuters

Investing.com -- Novo Nordisk shares dropped as low as $46.90 in Thursday’s session, their lowest level since January 2022, following a profit warning. 

On Tuesday, Novo Nordisk slashed its full-year 2025 guidance, sending its shares tumbling. The company also separately announced that Maziar Mike Doustdar has been appointed President and Chief Executive Officer of the company, effective August 7, 2025.

The stock had slipped further in premarket trading on Friday, down over 1% at around $46.60. However, it is now flat at just over $47 per share, still trading near the levels last seen in 2022.

Bank of America analysts downgraded Novo Nordisk (NYSE:NVO) to Neutral on Friday, citing “an uncertain path to recovery for Wegovy and Ozempic,” and “further headwinds that could limit growth.” 

These include the expiry of Ozempic’s Canadian patent, looming U.S. drug pricing negotiations under the Inflation Reduction Act, and competitive pressure from Eli Lilly’s orforglipron.

“Consensus seems to be shifting to FY26 EBIT growth in the mid- to high-single-digit percentage range (vs mid-teens prior),” BofA wrote. 

“Bulls see [this] as low enough,” while “bears cite the bottom half of FY25 guide and mid-single-digit for FY26 as optimistic given additional pressures.”

BofA also highlighted investor concerns over leadership. “Most were hopeful for an external CEO with a greater U.S. background for a clearer path to re-invigoration.”

Looking ahead, key data from Alzheimer’s trials and head-to-head studies comparing CagriSema and tirzepatide could serve as potential upside catalysts. 

Still, BofA cautioned that “TRx matters most,” and that brief share price reactions to data are likely to “revert back to TRx trends.”

Overall, Bank of America sees Novo’s FY26 guidance as likely conservative but warned that “low investor appetite is likely [to persist] (unless [there is a] big TRx shift).”

 

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