Core Insights - Novo Nordisk (NVO) shares declined approximately 4% in pre-market trading following U.S. President Donald Trump's indication of potential significant price reductions for the company's GLP-1 RA drugs, Ozempic and Wegovy, which have been crucial for the company's growth [1][7] - Trump suggested that the prices of these drugs could decrease to around $150 out-of-pocket for Americans, although formal negotiations have not yet commenced [2][3] - The reduction in drug prices could enhance access for diabetes and obesity patients but raises concerns about the implications for drug development economics and future medical innovations [4][11] Company Performance - Year-to-date, NVO stock has dropped 34.7%, contrasting with a 5.5% growth in the industry [6] - The company has faced challenges with slowing uptake of Wegovy and increased competition from Eli Lilly, prompting a restructuring plan aimed at saving around DKK 8 billion by 2026 through workforce reductions [10][11] Competitive Landscape - Eli Lilly, a key competitor, has seen rapid demand for its tirzepatide-based drugs, Mounjaro and Zepbound, which generated combined sales of $14.7 billion in the first half of 2025, accounting for 52% of Lilly's total revenues [12] - Following Trump's comments, Eli Lilly's shares also fell about 4% in pre-market trading, indicating investor concerns regarding similar pricing pressures for its GLP-1 therapies [13] Market Dynamics - The potential price cuts for GLP-1 drugs could deter pharmaceutical companies from investing in research and development, impacting future innovations in the industry [11]