Investor Concerns Send Novo Nordisk Shares Tumbling

Novo Nordisk shares are experiencing a significant decline amidst intensified investor concerns over its competitiveness in the obesity drug market against U.S. rival Eli Lilly. The company's stock has dropped 25% in March, marking its largest monthly fall since July 2002. Analysts predict first-quarter sales might not meet expectations.

Novo Nordisk shares have plummeted 25% this March, marking the company's most significant monthly decline since July 2002. Investor concerns mount as the Danish pharmacological giant faces fierce competition from U.S. rival Eli Lilly in the obesity drug arena.

Novo Nordisk recently lost its title as Europe's most valuable company by market capitalization to SAP, having enjoyed that position since September 2023 due to the success of its Wegovy weight-loss injections. However, investor confidence is wavering, attributable to the increasing competitiveness from Eli Lilly.

Amidst these market challenges, Bank of America analysts forecast that Novo Nordisk may fail to meet first-quarter expectations, with potential sales of Wegovy and Ozempic not hitting targets. The evaluation predicts a 2% cut in the company's full-year sales guidance, adjusting the expected growth range between 14% and 22%.

(With inputs from agencies.)