Novo Nordisk shares slump as guidance misses and rivals surge

Novo Nordisk’s chief financial officer, Karsten Munk Knudsen, spent recent days on calls with investors attempting to convey confidence in the company’s GLP-1 franchise, but the market response has been negative. The firm’s shares, down 15% year-to-date, fell further after its latest guidance fell short of analysts’ forecasts. In contrast, competitor Eli Lilly saw its stock rise 5% after reporting robust results.

CEO Mike Doustdar, celebrating his one-year tenure, took over after his predecessor was removed following a loss of market leadership to Eli Lilly, which recently became the first pharmaceutical company to reach a $1 trillion market cap. Novo Nordisk has reduced its headcount by 15% and introduced a weight-loss medication it claims commands 90% of the market. Nonetheless, the company’s upcoming capital-markets day is likely to emphasize strategic refinements rather than major shifts, offering limited new catalysts for investors.