Benzinga·2026-02-04 19:02Core Viewpoint - Novo Nordisk's stock has dropped approximately 18% following a weaker outlook for fiscal 2026, indicating challenges in sales growth and competitive pressures in the obesity and diabetes markets [1]. Novo Nordisk 2026 Guidance - Novo Nordisk anticipates a sales decline of -5% to -13% at constant exchange rates (CER) for 2026, excluding $4.2 billion from the reversal of 340B provisions [2]. - The sales outlook is affected by lower realized prices due to the "Most Favoured Nations" agreement in the U.S., patent expirations for semaglutide in certain markets, and increased competition [2]. Revenue from Weight Loss Drugs - Sales of Novo Nordisk's Ozempic increased by 1% to 31.83 billion Danish kroner (approximately $5.03 billion), while Wegovy sales rose by 17% to 21.86 billion Danish kroner (around $3.46 billion) [4]. - Mounjaro's revenue more than doubled to $7.4 billion, and U.S. Zepbound revenue surged 122% to $4.2 billion [4]. One Year Stock Performance - Over the past year, Novo Nordisk's stock has decreased by around 42%, contrasting with Eli Lilly's stock, which has increased by approximately 34% [5]. - Novo Nordisk's pipeline primarily includes insulin products, heart disease medications, and weight loss drugs, while Eli Lilly has a broader pipeline that includes treatments for cancer, Alzheimer's, and other conditions [5]. Competitive Landscape - Novo Nordisk has significantly increased its U.S. advertising expenditure on Wegovy and Ozempic in 2025, surpassing Eli Lilly as competition intensifies in the obesity and diabetes sectors [6]. - Despite the advancements with Wegovy, Novo Nordisk has struggled to compete with Eli Lilly's Zepbound, which has outperformed Wegovy in weekly new prescriptions this year [6]. Price Action - At the time of publication, Novo Nordisk shares were down 5.85% at $47.35, while Eli Lilly shares were up 9.56% at $1,099.38 [7].