On November 21, financial news reported (edited by Ma Lan) that the Danish pharmaceutical company novo-nordisk previously reached the peak of its business development thanks to weight loss drugs, but has also become a target of market skepticism.

The stock price has now fallen back to the level of the beginning of the year, essentially erasing the gains made from weight loss drugs at the start of the year, and has dropped over 40% from its peak this year.

The main reasons for the decline are the increasingly fierce competition in the global weight loss drug market and the supply constraints at novo-nordisk itself, which have dampened market enthusiasm for the company's weight loss drug business.

The financial report released earlier this month by novo-nordisk also amplified these concerns, as CFO Karsten Munk Knudsen admitted that next year's sales growth rate may be in the teens, significantly trailing market expectations.

barclays had previously indicated that novo-nordisk's outlook for 2025 put pressure on the stock price.

Still bullish.

As soon as novo-nordisk's flagship products Ozempic and Wegovy were launched, they were fervently sought after by those looking to lose weight, leading the company's stock price to continuously reach new highs, and it quickly became the largest company by market cap in europe. As of now, novo-nordisk remains the largest publicly traded company in europe, with a market cap of 358 billion USD.

However, due to competitor eli lilly and co significantly expanding its production capacity for weight loss drugs this year, it has impacted novo-nordisk a/s's market share.

Meanwhile, Trump's appointment of "anti-vaccine fighter" Robert F. Kennedy as the Secretary of Health and Human Services in the usa may also negatively affect weight loss drug companies. Kennedy has been critical of weight loss drugs, and some investors believe he will change the pricing or insurance coverage for weight loss drugs, thereby weakening the profit outlook for these drugs.

However, some analysts point out that the current sell-off sentiment towards weight loss drugs is excessive, and novo-nordisk a/s still has high investment value. Currently, analysts' 12-month target price for the stock is still close to its historical high.

Gilles Guibout, head of the european stocks strategy at axa sa sponsored adr, stated that novo-nordisk's stock price has been overly hyped this year, and the current volatility may be caused by hedge fund activities. He emphasized that novo-nordisk's stocks are widely held, and there is huge market potential, thus leading to more sellers than buyers, which can easily create a downward trend.

In December, novo-nordisk will release data on its latest next-generation weight loss drug CagriSema, and investors are eagerly anticipating it.