Finance
Novo Nordisk plunge wipes $50 billion off obesity drug giant
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Quick Summary
Novo Nordisk shares fell 16%, losing $50 billion in market value due to a forecasted sales and profit decline in 2026, marking the first revenue drop since 2017.
Novo Nordisk Shares Plunge, Losing $50 Billion in Market Value
Impact of Sales Forecast on Novo Nordisk
Feb 4 (Reuters) - Novo Nordisk shares tumbled 16% on Wednesday, wiping off around $50 billion from the Wegovy maker's market capitalization after it warned on Tuesday its sales and profits would fall in 2026.
Novo Nordisk, which was worth more than $600 billion in 2024, said it expected both its sales and operating profit to fall between 5% and 13% this year, affected by lower drug prices in the United States.
That would be the company's first revenue decline since 2017, according to LSEG data.
Investor Reactions
"After a year in which Novo Nordisk disappointed investors several times with downward adjustments, Novo has delivered yet another blow to investors," analysts from Jyske Bank said in a note to clients.
Market Capitalization Changes
Novo Nordisk's Copenhagen-listed shares were set for their biggest one-day drop since July, if the losses hold through the day, having wiped off all their gains from the beginning of the year.
Wednesday's share drop wiped more than 40 billion euros off the company's market capitalisation, which was at 216 billion euros ($255 billion) at Tuesday's close.
($1 = 0.8460 euros)
(Reporting by Boleslaw Lasocki, additional reporting by Josehpine Mason and Canan Sevgili)
Key Takeaways
- •Novo Nordisk shares dropped 16%, losing $50 billion in value.
- •The company forecasts a 5-13% decline in sales and profits for 2026.
- •This marks the first revenue decline since 2017.
- •Investor confidence shaken by repeated downward adjustments.
- •Copenhagen-listed shares experience significant drop.
Frequently Asked Questions about Novo Nordisk plunge wipes $50 billion off obesity drug giant
1What is market capitalisation?
Market capitalisation is the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.
2What are corporate profits?
Corporate profits refer to the earnings of a company after all expenses, taxes, and costs have been deducted from total revenue.
3What is investor reaction?
Investor reaction refers to the response of investors to news or events affecting a company, which can influence stock prices and market trends.
4What is a financial crisis?
A financial crisis is a situation in which the value of financial institutions or assets drops significantly, often leading to widespread economic instability.
