Novo Nordisk’s Share Price Slide Sparks Debate Over Whether the Stock Is Now a Bargain

Novo Nordisk is navigating one of its most turbulent market phases in recent years. After becoming one of the world’s most valuable drugmakers on the back of its diabetes and obesity portfolio, the company has seen its share price fall sharply in 2024 and 2025. The decline has been driven by competitive pressure, regulatory uncertainty and a slowdown in demand for key semaglutide based products in the United States.

Analysts point to several challenges weighing on investor sentiment. Illegal compounded versions of semaglutide have disrupted demand for Ozempic and Wegovy, while Eli Lilly’s competing drugs continue to gain momentum globally. The company’s recent earnings also missed expectations, prompting a guidance cut for 2025 and raising concern about the strength of its near term growth.

In response, Novo Nordisk announced a major restructuring plan aimed at streamlining operations and refocusing investment on core therapy areas. The program includes significant cost reductions and plans to expand capacity for authentic semaglutide production. A new agreement with the United States government, which will gradually reduce prices for Ozempic and Wegovy, is expected to improve patient access but could compress margins.

Despite these short term issues, the company’s long term fundamentals remain intact. Wegovy continues to expand into new medical indications, and the company’s pipeline includes several next generation treatments targeting obesity, metabolic conditions and rare diseases. Analysts expect strong global demand for weight management therapies to continue, giving Novo Nordisk a sizable market runway.

A number of valuation models now suggest the stock may be oversold. A recent discounted cash flow analysis estimates that the current share price trades well below projected intrinsic value, reflecting pessimism that may be overstated. Other traditional metrics, such as the price to earnings ratio, also indicate a discount to industry averages.

As the market recalibrates, many investors are weighing whether the recent downturn reflects short term noise or presents a favorable entry point into one of the world’s most influential healthcare companies. With competition intensifying and regulatory shifts underway, the next few quarters may define how Novo Nordisk positions itself in a rapidly evolving pharmaceutical landscape.