Shares of Danish pharmaceutical giant Novo-Nordisk A/S experienced a significant 5.27% drop on Tuesday intraday trading session, amid concerns over a potential slowdown in the sales growth of its blockbuster GLP-1 diabetes and weight-loss drugs.
The stock plunge was triggered by news from rival company Eli Lilly, which warned that its fourth-quarter 2024 revenue from the GLP-1 drug market (known as the "incretin market") is expected to be approximately $400 million lower than previously anticipated. While Eli Lilly's overall sales for 2024 and 2025 still showed strong growth, the potential slowdown in the lucrative GLP-1 segment raised concerns among investors.
Analysts speculate that Novo-Nordisk, as a key player in the GLP-1 market, could be impacted by this slowdown, leading to a sell-off in its shares. Notably, Eli Lilly stated that it did not gain any additional market share in the fourth quarter of 2024, implying that Novo-Nordisk's market position remained stable during that period.