Novo Nordisk Shares Face Pressure from Divergent Regional Strategies

As the year draws to a close, Novo Nordisk finds itself navigating a complex landscape defined by contrasting regional dynamics. Investor sentiment is being pulled in two directions: between a bruising price war in a key Asian market and a landmark regulatory approval in North America that promises future growth.

A significant positive development emerged from the United States in late December 2025. The U.S. Food and Drug Administration (FDA) granted approval for the first oral tablet version of Wegovy, intended for chronic weight management. This authorization, dated December 22, 2025, removes a major barrier for patients averse to injectable treatments. A market launch is scheduled for early January 2026.

Key details of the approval include:
* Pricing: The entry-level dose will be available starting at $149 per month.
* Efficacy: Clinical trial data demonstrated an average weight reduction of approximately 16.6%.
* Market Position: This tablet is the only once-daily oral medication in its therapeutic class.

Market experts view this development as a substantial long-term advantage, solidifying Novo Nordisk's lead over competitors still reliant solely on injectable formats.

Intensifying Competition Squeezes Margins in China

Counterbalancing the U.S. news is an escalating competitive situation in China, which is currently weighing on the company's share price. The primary concern for investors is a drastic reduction in prices for Wegovy within the Chinese market. Novo Nordisk has implemented list price cuts of roughly 48% in selected provinces.

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

This strategic move is a direct response to similar aggressive pricing actions by rival Eli Lilly on its competing product, Mounjaro. The Danish pharmaceutical giant appears focused on securing market share ahead of potential future challenges from generic drug manufacturers and patent disputes.

The financial implications are mixed. While lower prices may stimulate higher sales volumes, they simultaneously compress profit margins in one of the world's most critical growth markets. This tension has contributed to recent share price weakness, with the stock trading near 325 DKK and struggling to maintain support at the 327 DKK level, having declined around 1.9%.

Market Weighs Short-Term Pain Against Long-Term Gain

The immediate market reaction suggests that short-term anxieties over eroding profitability in Asia are currently dominant. Novo Nordisk's equity is consolidating noticeably below its annual highs, as investors await evidence that increased sales volume can offset the lower revenue per unit.

The company's strategy indicates a clear prioritization: defending and growing market presence, even at the temporary expense of profitability margins.

The coming months will be decisive. The successful launch and initial prescription trends for oral Wegovy in the United States starting January 2026 could provide fresh momentum for the stock. Until then, the central question remains whether the innovative potential in North America can sufficiently counterbalance the fierce price competition unfolding in Asia.