Overview
Novo Nordisk saw its shares fall 16% on Wednesday after the company informed investors on Tuesday that it expects both sales and operating profit to decline in 2026. The Danish drugmaker said the reductions would be driven by lower drug prices in the United States. The move wiped about $50 billion from the company's market capitalization.
Guidance and financial outlook
The company said it anticipated sales and operating profit to be down between 5% and 13% in 2026. Novo Nordisk had a market valuation in excess of $600 billion in 2024. According to LSEG data, the company would record its first revenue decline since 2017 if the guidance holds.
Market reaction
Copenhagen-listed shares were poised for their largest one-day percentage drop since July if the losses persisted through the trading session. The slide removed all of the stock's gains from the start of the year. Wednesday's decline erased more than 40 billion euros from the firm's market capitalization; the company had a market cap of 216 billion euros at Tuesday's close. (Exchange rate used in reporting: $1 = 0.8460 euros.)
Analyst comment
"After a year in which Novo Nordisk disappointed investors several times with downward adjustments, Novo has delivered yet another blow to investors," analysts from Jyske Bank said in a note to clients.
Implications for investors and markets
The sharp move in the company's shares highlights investor sensitivity to guidance tied to U.S. drug pricing. The scale of the market-cap loss underscores the degree to which expectations around drug pricing can influence equity valuations in the healthcare and pharmaceutical sectors. The immediate effect was felt across Novo Nordisk's listed equity, with the drop significantly reducing the firm's market value in euros and dollars.
What is known and limits of available information
The company provided a numeric range for the expected decline in both sales and operating profit in 2026 and cited lower drug prices in the United States as the reason. The article reports market-cap losses and the historical note that a revenue decline would be the first since 2017 per LSEG data. Beyond the figures and the Jyske Bank comment, no additional operational or timing details were provided in the available information.