Novo Nordisk’s share price has plummeted more than 50% this year, pushing the Danish drugmaker out of Europe’s top ten most valuable companies. The company behind the popular diabetes drug Ozempic is struggling due to increased competition from Eli Lilly’s Mounjaro and cheap copycat versions.
In May, Novo Nordisk announced it would replace its chief executive, which bewildered analysts. The company has struggled to keep up with the competition, particularly in the US market, where Eli Lilly’s Zepbound surpassed Wegovy in new prescriptions.
Analysts say that the popularity of Ozempic took the company by surprise and led to a shortage of insulin. This sparked production of cheaper copycat versions, which continue to be sold despite Novo Nordisk’s efforts to stop them.
“It’s like a can of worms,” said HSBC analyst Rajesh Kumar. “Novo is issuing cease-and-desist orders, but it has been difficult to stop compounding.”
Eli Lilly’s faster production and marketing strategies have given the company an edge over Novo Nordisk. The US firm’s oral tablet for weight loss has shown promising results in late-stage clinical trials, with similar weight loss to Novo Nordisk’s injections.
The new chief executive of Novo Nordisk aims to revamp the company’s pipeline and strategy. However, analysts say that the market is no longer patient and that investors’ expectations for future earnings have decreased.
“The reality is what it is,” said Gareth Powell, head of healthcare at Polar Capital. “Lilly’s product is seen as better.”
Source: https://www.nytimes.com/2025/08/07/business/ozempic-wegovy-novo-nordisk-decline.html