Why Novo Nordisk Stock Just Hit a 4-Year Low

Core Insights - Novo Nordisk's share price has fallen to a four-year low, driven by a series of setbacks in drug trials and increasing competition in the GLP-1 market [1][5][6] Group 1: Drug Trials and Market Performance - The company's recent trial for semaglutide in treating Alzheimer's disease failed to show significant results, leading to the discontinuation of the trials [4][5] - Novo Nordisk's stock has dropped 48% in 2025, reflecting a broader trend of losing market share to competitors like Eli Lilly, which has captured 58% of the GLP-1 market [5][6] - The global GLP-1 market is projected to grow from $52 billion in 2024 to $187 billion by 2032, indicating a significant opportunity despite current challenges [2] Group 2: Competitive Landscape - Eli Lilly's stock has increased by 42% this year, significantly outperforming Novo Nordisk and the broader market, which is up 15.5% [7] - In a bid to regain competitive advantage, Novo Nordisk engaged in a bidding war for biotech start-up Metsera but ultimately lost to Pfizer [8][10] - The ongoing competition in the GLP-1 market remains intense, with obesity being a chronic disease that can lead to various health issues, ensuring continued interest in GLP-1 drugs [11]