Novo Nordisk, once the largest stock in Europe, has now been overtaken by SAP following a significant drop in share price. The Danish company’s stock surged in mid-2022 due to demand for weight-loss drugs but has since plummeted, losing over 23% of its value by Tuesday’s close.

The decline in Novo Nordisk’s shares is attributed to a profit warning, with the company expecting a drop in full-year sales and profit forecasts. Competing with Eli Lilly for market share in the weight loss space, Novo Nordisk faces challenges from Lilly’s more effective drugs with fewer side effects.

Investors are now questioning whether Novo Nordisk stock is worth buying, selling, or holding. Despite a decrease in fair value estimate, some analysts believe the stock is undervalued, trading at 320 kroner and holding potential for long-term investors. The company’s recent struggles have prompted a reevaluation of its prospects and market position.

Read more at Morningstar: Why Novo Nordisk Shares Fell 25%