Copenhagen | November 7, 2025
Shares of Danish pharmaceutical giant Novo Nordisk fell 2.3% on Friday, following confirmation of a drug pricing agreement with US President Donald Trump and Eli Lilly to cut GLP-1 obesity treatment costs for American consumers and healthcare programs.
The pact, announced late Thursday and formalized Friday morning, covers key blockbuster medications such as Ozempic, Wegovy, and Mounjaro, which have fueled the global weight-loss drug boom.
The deal aims to reduce prices across Medicare, Medicaid, and cash-buyer channels, in exchange for three years of US tariff relief on imported pharmaceutical components.
Short-Term Hit, Long-Term Gain
Analysts predict an immediate revenue dip for Novo Nordisk due to price adjustments, but expect expanded access and market volume growth in the long run as affordability improves.
“It’s a short-term earnings squeeze for a longer-term market capture,” said Martin Jørgensen, healthcare analyst at Danske Bank. “Tariff relief offsets some pain, but pricing pressure is real.”
Shares of Eli Lilly also edged 1.2% lower, with both companies expected to revise guidance for 2026 once the new pricing framework takes effect in January.
Market Impact
The announcement sent ripples through European healthcare stocks, with the STOXX 600 Healthcare Index down 0.8% at midday trading. Novo Nordisk’s ADRs in pre-market US trading mirrored the decline, while broader markets remained steady.
“Investors are recalibrating expectations — the era of unchecked pricing power in obesity drugs is over,” noted Michael Tan, senior strategist at Morgan Stanley.
Policy Context
The move follows months of negotiations between the Trump administration and pharmaceutical executives to curb rising obesity drug costs amid growing public demand.
Officials described the agreement as a “historic affordability pact”, emphasizing consumer savings while maintaining incentives for innovation.
A White House statement said the deal “balances affordability, access, and American manufacturing competitiveness.”
Company Reactions
In a joint press release, Novo Nordisk CEO Lars Fruergaard Jørgensen said the company “supports expanding equitable access to proven GLP-1 therapies,” calling the accord “a sustainable model for the future.”
Eli Lilly CEO David Ricks added that collaboration “ensures innovation reaches those who need it most.”
Stock Snapshot — Novo Nordisk (NOVO-B.CO)
| Metric | Value | Change | Context |
|---|---|---|---|
| Share Price | 884.50 DKK | -2.3% | After US pricing deal |
| Market Cap | ~$440B | ↓ | Short-term profit squeeze |
| YTD Performance | +36% | Driven by GLP-1 boom | |
| Key Drugs | Ozempic, Wegovy | Price revisions from Jan 2026 |
Editor’s View:
This deal signals a turning point in global pharma economics, where volume replaces price as the growth engine. While Novo Nordisk faces an immediate hit, its long-term position as a GLP-1 leader — backed by tariff relief and political goodwill — could strengthen its competitive moat into the next decade.
