Novo Nordisk shares tumbled as much as 6% on Tuesday after former President Donald Trump vowed to seek lower prices for weight-loss drugs like Wegovy and Ozempic if re-elected. The Danish pharmaceutical giant’s stock experienced its steepest intraday decline since January, briefly hitting 167.74 Danish crowns.
Trump’s comments, made during a campaign rally in Iowa, targeted Novo Nordisk and Eli Lilly, both major players in the burgeoning weight-loss drug market. The potential for government intervention in drug pricing adds uncertainty to a sector already grappling with supply chain constraints and surging demand, impacting investors, patients, and the broader healthcare landscape. This comes as weight-loss medications are becoming increasingly popular, with significant implications for public health and the pharmaceutical industry’s revenue streams.
“We’re going to look at the pricing of these drugs,” Trump said,according to reports from the rally.”These are big, big companies making tremendous amounts of money.” He specifically mentioned Novo Nordisk and Eli lilly, suggesting he would pressure them to lower costs.
The remarks sparked immediate concern among investors, who fear potential price controls or other measures that could erode the profitability of these blockbuster drugs. Novo Nordisk’s American depositary receipts closed down 5.7% at $154.48 in New York trading.
Demand for Wegovy and Ozempic has soared in recent months, driven by growing awareness of their effectiveness in promoting weight loss and combating obesity-related health issues. Novo Nordisk has struggled to keep up with demand, leading to supply shortages and rationing in some markets. The company reported sales of 23.2 billion Danish crowns ($3.4 billion) for Wegovy in the first nine months of 2023.
