Pharmaceutical giant Novo Nordisk is forecasting a sharp decline in revenue this year, which has already been reflected in a 17% drop in the company’s stock price. Management attributes this decline to “painful” pressure from the Donald Trump administration to lower drug prices, as well as increased competition. As a result, after years of double-digit growth, sales are expected to decrease between 5% and 13% this year.
The price reductions have particularly impacted the popular drugs Ozempic and Wegovy. Based on an agreement reached with the White House, the monthly cost of these medications has dropped from approximately $1,000 to an average of $350. Furthermore, the patent for the primary ingredient in several countries, including India, has expired, allowing other manufacturers to introduce significantly cheaper generic versions to the market.
The company’s CEO, Lars Fruergaard Jørgensen (noted as Mike Dustdar in your text), describes 2026 as a period of “unprecedented pricing pressure.” However, he noted that lower prices are driving up demand, as evidenced by the successful launch of new Wegovy pills in the U.S. market. By late January, 50,000 weekly prescriptions were already being written for this drug. This gives the company hope that the increased volume of sales will partially offset financial losses.
Novo Nordisk’s situation contrasts sharply with its main rival, Eli Lilly, whose shares have conversely increased. Eli Lilly reached a valuation of $1 trillion last year and expects a 45% growth in sales this year. According to clinical trials, the company’s drug Mounjaro proved more effective for weight loss than its Danish competitor’s product, giving Eli Lilly a market advantage.
