Novo Nordisk Faces Mounting Challenges in Key Asian Markets

The Danish pharmaceutical giant Novo Nordisk, once a darling of equity markets, continues to navigate turbulent waters. With its share price having already halved in value this year, fresh headwinds are emerging from Asia, compounding existing pressures. Investors are now questioning whether the buy ratings maintained by analysts can hold firm against a backdrop of intensified competition and tightening regulations.

The cumulative impact of these challenges is starkly visible in the equity's performance. Since the start of the year, Novo Nordisk shares have shed approximately 51 percent of their value, trading well below their 52-week high. The current situation is defined by a tension between continued analyst optimism and the tangible competitive threat now materializing in China. Any potential for price stabilization will hinge on the company's effectiveness in defending its market position across Asian territories in the coming quarters, despite the newly erected barriers.

Regulatory Scrutiny Intensifies in South Korea

Simultaneously, regulatory pressure is mounting in South Korea. Health authorities there are increasingly issuing warnings about the misuse of weight-loss medications such as Wegovy by individuals who are not clinically overweight for purely cosmetic purposes. Announced plans for stricter monitoring protocols to prevent off-label prescriptions are expected to noticeably slow growth and sales velocity in this important Asian market.

Strategic Setback in China as Rival Gains Foothold

Perhaps the most significant development is unfolding in China. Reports indicate that arch-rival Eli Lilly has scored a major strategic victory. Its diabetes and weight-loss drug, Mounjaro, has been officially added to China's National Reimbursement Drug List (NRDL).

Should investors sell immediately? Or is it worth buying Novo Nordisk?

This inclusion fundamentally alters the competitive landscape. State reimbursement dramatically lowers the cost barrier for Chinese patients, placing Novo Nordisk under significant pressure in one of the world's most critical growth markets. The risk is elevated that Eli Lilly, through aggressive pricing and reimbursement strategies, could capture substantial market share in the GLP-1 product category.

Berenberg Bank Maintains Bullish Stance

Despite the strained market conditions, investment bank Berenberg is holding fast to its positive assessment. On Monday, its analysts reaffirmed their buy recommendation for the Danish pharmaceutical leader, attaching a price target of 400 DKK.

This confirmation comes in the wake of recent commentary from CFO Karsten Munk Knudsen. While he acknowledged potential challenges for the 2026 fiscal year, he simultaneously emphasized the company's focus on the obesity market and the long-term potential of its product pipeline. The analysts evidently continue to view the massive share price correction of 2025 as an overreaction that fails to reflect the fundamental outlook.