Novo Nordisk shares tumbled as much as โ6% on Tuesdayโ afterโ former President Donald Trump vowed to seek lower โprices for weight-loss drugs like Wegovy and Ozempic if โขre-elected. The Danish pharmaceutical giant’s stock experienced its steepest intraday decline โฃsince January, briefly hitting 167.74 Danish crowns.
Trump’s comments, โmade during a campaign rally in Iowa, targeted Novo Nordisk and Eliโ Lilly, both major players inโ the burgeoning weight-loss drug market. The potential for government intervention in drug pricingโ adds uncertainty to a sector already grappling with supply chainโข constraints and surging demand, impacting investors, patients, and the broader โฃhealthcare landscape.โ This comes as weight-loss medications are becoming increasingly popular, withโข significant implications for public health and the pharmaceutical industry’s revenue streams.
“We’re going to look at the pricing โof these drugs,” Trump said,accordingโ to reports from the rally.”These are big, big โขcompanies making tremendous amounts of money.” He specifically mentioned Novo Nordisk and Eli lilly, suggesting he would pressure them to lower costs.
Theโข remarksโฃ sparked immediate concern among investors, whoโ fear potential price controls or other measures that could erode the profitabilityโ of these blockbuster drugs. Novo Nordisk’s American depositary receipts closed down 5.7% โคat โ$154.48 inโ New โYork trading.
Demand for Wegovy and Ozempic has soared in recent months,โ driven by growing โawareness of theirโ effectiveness in promoting weight loss and combating obesity-related health issues. Novo Nordisk has struggled to keep up with demand,โ leading to supply shortages and rationing inโ someโข markets. The company reported sales of 23.2 โbillion Danish crowns ($3.4 billion) forโ Wegovy in โคthe first nine months of 2023.