The European pharmaceutical giant, Novo Nordisk, continues to experience sequential waves of outflows, as investors remain convinced that the company is losing the obesity drug race against its competitors but also the pileup of misleading marketing lawsuits against it, do no favours either.

Since July of 2024, the shares of the drugmaker lost more than two thirds of their value, hit 4-year lows, got dropped from the list of the top 10 constituents of the Euro Stoxx 600, received multiple downgrades from analysts and no significant buying interest appears to be on the horizon, creating a poisonous concoction foretelling, more bad days lie ahead.

Portfolio managers mercilessly dumped en masse shares from their portfolios last week, sending the stock crashing down by almost 22%, marking the biggest single-day percentage drop for the stock in years, after the pharma juggernaut slashed its 2025 full-year sales and operating profit forecasts, citing weaker-than-anticipated demand for Wegovy, its poster-child weight-loss drug, and the announcement of a new CEO.

Earlier today, Novo released its second quarter earnings data and albeit showcasing 13% revenue growth, a 16% sales increase and a 25% rise in operating profit, from its obesity loss (Wegovy) and diabetes (Ozempic) drugs, traders reacted negatively as they focused on the maintained downward revision of its full-year growth outlook, announced last week, stemming from intensifying competition and slower-than-anticipated market penetration for its treatments.

Besides the aforementioned bearish catalysts placing extensive downward pressure on its stock, the drugmaker will most likely face additional macro headwinds from Trump’s import tariff stance on pharmaceuticals products entering the United States. The US President flirted with the idea of imposing import levies of up to 250% on the entire pharma industry and more details will be announced within the remainder of this week.

Now that the drugmaker adjusted profit and operating sales targets lower for 2025 citing fears of increased competition with Eli Lilly at the GLP-1 frontier, traders may find this as a decent enough dip buy opportunity in hopes that the slump has come to an end.

Technical Analysis

NVO Chart – Novo Nordisk hits 4-year lows after FY2025 sales and operating profit forecast slash

Resistance: 57 (R1), 64 (R2), 71 (R3)
Support: 46 (S1), 41 (S2), 36 (S3)