Novo Nordisk shares plunged 13.8% to $50.83 on Tuesday after the Danish pharmaceutical company issued a downbeat sales outlook for 2026. Management said it now expects sales for 2026 to decline in a range between 5% and 13%, attributing the revision to increasing competition in the market for obesity therapies.
The companys guidance was noticeably weaker than analyst projections, which had anticipated roughly a 2% decline in sales for the year. The revised outlook arrived with Novo Nordisks fourth-quarter financials, where operating profit fell 14% to 31.7 billion Danish crowns. That profit figure was slightly above the analyst estimate of 31.2 billion crowns.
Investors reacted quickly to the guidance and results. Novo Nordisks share price dropped to $50.83 on Tuesday, reflecting investor concern about the company's near-term revenue trajectory. The sell-off in Novo Nordisk also affected other companies developing obesity treatments and broader biopharma names tied to the space.
Rival Eli Lilly saw its shares decline 3.4% in afternoon trading. Smaller developers in the obesity drug sector experienced sharper moves: Structure Therapeutics and Altimmune both fell 5.4%, Viking Therapeutics declined 3.7%, and Amgen slipped 1.4%.
Year-to-date performance for Novo Nordisk has been weak, with shares down approximately 42% in 2025. The company's updated sales projection and the quarterly profit print together produced an immediate reassessment of growth expectations among market participants.
Below are the principal facts from the announcement and market reaction:
- Novo Nordisk forecast 2026 sales between a 5% decline and a 13% decline due to heightened competition in the obesity drug market.
- Analysts had expected roughly a 2% sales decline for 2026, making the companys guidance materially worse than consensus.
- Fourth-quarter operating profit was reported at 31.7 billion Danish crowns, down 14% and slightly above analysts estimates of 31.2 billion crowns.
- Market impact included a 13.8% drop in Novo Nordisk shares to $50.83 and notable declines across peers such as Eli Lilly, Structure Therapeutics, Altimmune, Viking Therapeutics, and Amgen.
- Novo Nordisk shares have fallen about 42% so far in 2025.
The companys outlook and the ensuing market reaction highlight the competitive pressures facing the obesity treatment sector and the sensitivity of related stocks to shifts in growth expectations.