Novo Nordisk Shares Hit 9-Month Low

By Danilo Masoni

MILAN (Reuters) – Danish drugmaker Novo Nordisk's shares reached a low not seen in over nine months on Thursday after a remarkable 8% increase the previous day. This decline followed disappointing guidance for next year, overshadowing the strong sales growth of its popular weight-loss drug, Wegovy.

The stock exhibited a wide 14-percentage-point range in just two days. As of 1018 GMT, shares were down 3% in Copenhagen after plunging 5.5% earlier.

During an analyst call on Wednesday, after a quarterly release that alleviated concerns about the demand for Wegovy, Novo's finance chief, Karsten Munk Knudsen, indicated that sales growth for next year could be in the high teens percentage range.

Analysts at Barclays noted that projections for 2025 negatively affected the stock performance. Emily Field, an analyst at the UK bank, commented that the midpoint for FY25's top line seemed lower than the current consensus.

The formal guidance for 2025 is expected in February. Gilles Guibout, head of European equity strategies at AXA Investment Managers, suggested that the drastic price movements may have been driven by hedge fund activities. He pointed out that Novo Nordisk is a highly owned stock in the market, making it easier to find sellers than buyers.

Despite an approximate 4% increase in stock value this year, shares have seen a nearly 30% decline from the record high recorded in June. Currently, the stock is trading at 27 times its anticipated earnings, reflecting a 22% premium over its 20-year average valuation, and the company holds a market capitalization of around $470 billion.