Novo Nordisk’s shares plunged 18% after the company forecasted a significant drop in sales and profit growth for 2026. Sales are predicted to decline by up to 13% at constant exchange rates, marking the first decrease in years. Operating profit growth could also fall by 13% at CER.

The weak outlook for 2026 is attributed to pricing headwinds in the US, notably from President Trump’s Most Favored Nation policy impacting semaglutide brands. Novo also faces challenges from patent expiries in key markets like Brazil, Canada, and China, leading to increased competition and market share erosion.

Novo is aiming to regain ground in the weight loss sector, where it was once a dominant player. Lilly’s tirzepatide brands have outperformed Novo’s offerings, leading to a shift in market dynamics. Novo’s hopes for growth may lie in the oral obesity treatment space, where they secured FDA approval for a GLP-1RA pill ahead of Lilly.

Analysts from Citi noted that the financial challenges faced by Novo could be offset by a strong early launch of the Wegovy pill. Novo is also looking towards its next-generation obesity drug, CagriSema, to drive revenue growth and fill gaps in their product portfolio.

Despite the setbacks, Novo could potentially capitalize on the growing obesity market, forecasted to reach $173.5 billion by 2031 across major markets. The company faces tough competition from rivals like Lilly, who recently achieved a significant milestone by becoming the first trillion-dollar market cap company in healthcare.

Read more at Yahoo Finance: Novo Nordisk shares tumble 18% after 2026 sales dip warning