Novo Nordisk shares plummeted nearly 7% on October 17, 2024, following remarks by former U.S. President Donald Trump regarding the popular weight-loss drug Ozempic. the danish pharmaceutical giant saw its stock price decline sharply during trading hours after Trump publicly questioned the drug’s cost, suggesting it should be priced at “around $150.”
the sell-off reflects investor concern over potential future price controls on Ozempic and Wegovy, Novo Nordisk‘s other leading weight-loss medication, should Trump return to office.Thes drugs have become blockbuster products,driving significant revenue growth for the company,but also attracting scrutiny over their high price tags. Novo Nordisk recently lowered its revenue and profit projections for 2024 and announced plans to reduce its workforce by nine thousand employees amid pressures within the pharmaceutical sector.
Novo Nordisk, headquartered in Bagsvaerd, Denmark, is a global leader in diabetes care and obesity treatment.Ozempic, originally developed for type 2 diabetes, gained widespread attention for its off-label use as a weight-loss aid, leading to soaring demand and, subsequently, supply challenges. Wegovy is specifically approved for chronic weight management. The company’s valuation has surged in recent months, making it Europe’s most valuable company, but it remains vulnerable to political and regulatory shifts impacting drug pricing.
