Why Novo Nordisk Stock Dipped on Thursday

Novo Nordisk's (NYSE: NVO) is famous and celebrated for its cutting-edge obesity medication. But on Thursday, its stock felt like the company ingested some of its own treatment. Its U.S.-traded American depositary receipts (ADRs) saw their price slump by more than 2% following the move, a steeper decline than the S&P 500 index's 0.3% slip.

Slimming down

Well before market open that morning, Morgan Stanley's Thibault Boutherin knocked his Novo Nordisk price target down to 600 Danish kroner ($86.67) per share; previously, this number was 700 kroner ($101.11). In doing so, he left his equalweight (i.e., hold) recommendation intact.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

According to reports, Boutherin expressed concern in a new research note that the subscriptions for Wegovy are trailing those of its great rival, Zepbound, from American pharmaceutical titan Eli Lilly (NYSE: LLY).

His calculations indicate that Zepbound is taking 59% of overall weekly prescriptions for weigh-loss medication vs. Novo Nordisk taking the remaining 41%. Perhaps more worrying for the European company, the difference between weekly prescriptions for starting doses is starker, with the percentages being 68% to 32% in Eli Lilly's favor.

With this headwind, Boutherin anticipates that Novo Nordisk will cut its full-year 2025 guidance. This might come as soon as its first-quarter earnings release.

The toughest competition possible

Wegovy was not on the market long before Eli Lillly pounced on it with Zepbound. The U.S. company is extremely large and has vast resources, which made it a tough competitor right out of the gate. Meanwhile, other companies large and small are racing to develop their own obesity products, so Novo Nordisk has to step lively to continue succeeding in the segment.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $295,009!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,000!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $523,463!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of March 24, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.