Novo Nordisk, Denmark’s most widely held stock, lost more than 30% of its market value in just four days in what Danish investors have called a “week from hell.” The crisis was triggered by slashed growth forecasts, fierce U.S. competition, a new CEO appointment, and added political pressure from the United States.
Unraveling Four Days of Turmoil
Novo Nordisk, long considered Denmark’s crown jewel in the pharmaceutical industry, suffered a calamitous week that saw its stock plummet 31.7% in just four trading days. The sell-off began Tuesday, July 29, when the company abruptly downgraded its growth forecast for the year, citing rising competition and weakening U.S. sales for its signature obesity drug, Wegovy. This surprised many investors and led to a big drop in the company’s stock.
Once the largest company on the Danish stock exchange and valued higher than the country’s GDP, Novo Nordisk has now lost more than $480 billion DKK in market capitalization—more than Denmark’s entire gross domestic product for 2023. Losing so much value in just a few days shows that even large companies can have serious problems.
Day 1: Growth Forecast Slashed and CEO Transition
Tuesday’s troubles began shortly after 1 PM local time when the company issued a surprise announcement dramatically cutting its revenue expectations for the year. Danish investors reacted swiftly, sending the stock down 15% within minutes. The shock didn’t end there.
Later that afternoon, Novo Nordisk named Mike Doustdar as the new CEO, replacing Lars Fruergaard Jørgensen. Instead of reassuring investors, the leadership change deepened anxiety. The stock closed the day with a staggering 23.1% drop.
Industry analysts pointed to increasing losses to generic versions of Novo products and an aggressive push into the obesity treatment market by American rival Eli Lilly. This shift had been simmering, but few anticipated how deeply it would shake investor confidence.
Day 2: No Recovery in Sight
Typically, stocks rebound after a sharp correction, but Wednesday brought no respite. Novo’s share price continued to slide, finishing the day with an additional 6.3% drop. Rather than instilling hope, the resignation and new appointment elevated concerns about leadership stability during a volatile period.
Many believe the core of the crisis lies in performance gaps in the critical U.S. market. The company’s once-dominant position in obesity treatment is under siege, and market shares are swiftly shifting to Eli Lilly. Analysts and insiders agree: significant structural changes are needed for Novo to compete more effectively on American soil, including stronger sales execution and a more aggressive pricing strategy.
Day 3: Political Pressures Add Fuel to the Fire
As Novo Nordisk scrambled to restore investor confidence, an entirely new blow arrived Thursday. A letter from the White House landed on the desk of outgoing CEO Jørgensen. Signed by President Trump, the message demanded that Novo and 16 other pharmaceutical firms reduce prices for medications sold in the U.S.
The political hand-pressing from Washington added to market jitters already weighing down the stock. While Eli Lilly was also on the recipient list, Novo was particularly vulnerable, given the uncertainties already engulfing its U.S. operations. The market reacted harshly, sending shares down another 3.2%.
Day 4: A Week Ends in Red
On Friday, the stock declined again—this time by 1.8%—capping off a devastating four-day slide. Longtime investors, many of whom had considered Novo Nordisk the ultimate “safe bet,” were caught off guard. At the height of optimism in early summer 2024, the stock had surged past a symbolic 1000 DKK per share. By the end of this week, it was trading near 309 DKK.
Several financial institutions took advantage of the low prices to re-enter the stock, but the overall sentiment remained wary. The sharp decline left Danish investors questioning how the company would win back more than a million American patients who had moved away from its products.
What Lies Ahead
New CEO Mike Doustdar faces a monumental task. His immediate priority is to stabilize the business in the United States, the world’s largest pharmaceutical market. In his first communication with markets, Doustdar pledged a shift to a “performance-driven culture” with sharper cost controls and greater product-level accountability.
However, analysts believe that cultural change alone won’t be enough. Restoring Danish investors trust will require Novo to defend its competitive edge in innovation, execute better in sales, and manage political headwinds in Washington. With the company’s half-year earnings report due Wednesday, all eyes are now fixed on how deeply rooted the problems go—and whether this crisis will serve as a turning point or a continuing descent.
