Why did Novo Nordisk’s Stock Crash Over 20% in Premarket Trading Today?

Novo Nordisk (NVO) shares are experiencing a dramatic selloff in premarket trading, plunging over 20% after the Danish pharmaceutical giant delivered its second forecast cut of 2025. The obesity drugmaker warned that both full-year sales and operating profit would grow significantly less than previously expected, citing weaker demand projections for its blockbuster weight-loss drug Wegovy and diabetes treatment Ozempic.

This latest disappointment has intensified investor concerns about the company’s ability to compete effectively against U.S. rival Eli Lilly in the rapidly expanding obesity drug market.

Novo Nordisk Cuts Sales Growth Forecast to 8%-14%

Novo Nordisk delivered a significant blow to investor confidence by slashing its 2025 financial outlook across multiple key metrics. The company now expects sales growth of just 8%-14% in local currencies, a substantial reduction from its previous guidance range of 13%-21%. Operating profit growth projections were similarly downgraded to 10%-16%, falling well short of the prior 16%-24% forecast range.

The revised guidance stems from disappointing performance expectations across Novo’s most important product lines in crucial markets. Specifically, the company cited “lower growth expectations for Wegovy in the U.S. obesity market” and “lower growth expectations for Ozempic in the U.S. GLP-1 diabetes market” as primary drivers of the reduced outlook. Additionally, Wegovy’s market penetration in select international obesity markets has fallen short of internal projections.

This marks the second time in 2025 that Novo Nordisk has been forced to lower its financial expectations, suggesting persistent challenges in what should be the company’s strongest growth areas. The repeated forecast cuts indicate that competitive pressures and market dynamics in the obesity drug space may be more challenging than initially anticipated, particularly as Eli Lilly continues to gain market share with its competing treatments.

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NVO Stock Brief: Premarket Collapse Following Earnings Miss

Novo Nordisk shares opened premarket trading at $55.11, down $13.88 or 20.12% as of 7:37:46 AM EDT, representing a catastrophic gap-down from the previous day’s closing price of $69.00.

The stock had already declined $2.70 (3.77%) during regular trading hours on Monday, bringing the total decline to over 23% in just over 12 hours of trading activity. This dramatic selloff has erased billions in market capitalization and highlights the severity of investor disappointment with the company’s revised guidance.

The premarket collapse comes after Novo Nordisk shares have already been under significant pressure over the past year, as investors have grown increasingly concerned about the company’s competitive position against Eli Lilly in the lucrative obesity drug market. The latest forecast cut appears to validate these concerns, suggesting that Novo may be losing ground in what many analysts consider the most promising pharmaceutical market opportunity of the decade.

The steep premarket decline indicates that institutional investors are rapidly repricing the stock based on the reduced growth expectations and concerns about the company’s market position. With the stock falling well below key technical support levels, NVO faces the prospect of continued selling pressure as portfolio managers reassess their positions in light of the company’s deteriorating fundamentals and competitive challenges in its core markets.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.