Why Novo Nordisk Stock Is Sinking This Week

Core Insights - Novo Nordisk's stock price has declined over 8% since last Friday, following disappointing third-quarter results that missed earnings and revenue expectations [1][2] Financial Performance - The company reported earnings of 4.5 Danish krone (DKK) per share on revenue of 75 billion DKK, falling short of expectations of 4.99 DKK per share and 76.5 billion DKK in sales [2] - Novo Nordisk has lowered its full-year outlook for 2025, expecting sales and operating profit growth to be 4 and 6 percentage points lower than previously anticipated [2] Competitive Landscape - Eli Lilly announced its GLP-1 drug tirzepatide as the world's best-selling drug, intensifying competition in the market [3] - Novo Nordisk is engaged in a bidding war with Pfizer for a biotech firm, Metsera, which is developing new obesity treatments, potentially increasing costs for the company [4] Market Opportunities - Both Novo Nordisk and Eli Lilly have reached an agreement with the Trump administration to reduce prices for their anti-obesity drugs for Medicare and Medicaid patients, which may expand their access to U.S. patients [5] - The anti-obesity drug market is projected to exceed $100 billion within five years, highlighting significant growth potential despite fierce competition [5]