Just last month, Novo Nordisk A/S shares seemed to be turning a corner. Analysts were optimistic about the pill version of the Danish drugmaker’s blockbuster Wegovy obesity shot, while investors seemed to have priced in any weakness in the former market darling’s sales outlook.
This week, the narrative has been flipped on its head. Novo shares have plunged 21%, hit first by guidance for a much steeper-than-expected decline in revenue, and then the launch by telehealth firm Hims & Hers Health Inc. of a cheaper copycat version of the Wegovy weight-loss pill. Even after a slight rally on Friday, the shares are still on track for their worst week in six months.
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