Novo Nordisk Plunges Nearly 15% After Earnings. Here's What Investors Need to Know.

Core Viewpoint - Novo Nordisk's recent earnings report revealed both negative guidance for 2026 and positive early adoption of its new GLP-1 weight-loss pill, suggesting a complex outlook for the company moving forward [1][2][3]. Negative Aspects - The company provided disappointing guidance for 2026, with sales and earnings expected to decline between 5% and 13% [2]. - A significant factor contributing to this decline is the lower pricing of GLP-1 drugs in the U.S. market, resulting from an agreement with the U.S. government [3]. Positive Aspects - Despite the negative guidance, the company reported a higher-than-expected adoption rate for its new GLP-1 pill, with 170,000 patients using it within just four weeks [3]. - The preference for pills over injections among consumers could expand the market for Novo Nordisk's GLP-1 products, supported by lower prices from the government deal [4]. - The early success of the pill indicates potential for volume growth that may eventually counterbalance the pricing pressures expected in 2026 [6]. Long-term Perspective - Novo Nordisk's stock has lost two-thirds of its value since its peak in 2024, but it remains a key player in the emerging GLP-1 market [5]. - The company's internal expectations suggest that after 2026, the outlook may improve significantly as volume growth could offset pricing declines [6].