Novo Nordisk Shares Unmoved by Chinese Regulatory Win

Despite clearing a significant regulatory hurdle in China this Monday, Novo Nordisk's stock continues to struggle. The Danish pharmaceutical giant received approval from Chinese authorities for its drug Wegovy (semaglutide), authorizing its use for reducing cardiovascular risks. This decision opens access to a substantially larger patient population within one of the world's biggest healthcare markets. However, the equity has failed to break its persistent downward trend.

The company's challenges extend beyond the market's tepid reaction to the China news. In early December, two Phase 3 trials investigating semaglutid for Alzheimer's disease patients were unsuccessful. The studies, which involved 3,808 participants over two years, demonstrated no clinical benefit compared to a placebo. This development compounds the pressure from intensified competition in the GLP-1 sector. Rival Eli Lilly recently reported a year-over-year revenue surge of 185% for its weight-loss treatment Zepbound. In contrast, Novo Nordisk posted a more moderate combined growth of 12% in its diabetes and obesity segment for the third quarter.

Since reaching its peak in July 2024, the value of Novo Nordisk's stock has declined by more than 60%.

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

Institutional Selling Adds to Downward Momentum

A major factor weighing on the share price is the retreat of institutional capital. Notably, Baldwin Wealth Partners LLC slashed its position by a substantial 82% during the third quarter of 2025, divesting 148,569 shares. This selling activity aligns with the broader competitive and clinical headwinds facing the company.

A Pivotal 2026 Looms

Market experts at Scotiabank anticipate that 2026 will be a decisive year for the obesity market. New oral GLP-1 alternatives from competitors are nearing launch, and Pfizer is making an aggressive push into the sector through its acquisition of Metsera. The focus now shifts to Novo Nordisk's pipeline execution. The corporation has submitted an application for approval of its weekly CagriSema injection and is developing a higher-dose 7.2 mg version of Wegovy.

The prevailing analyst consensus currently stands at "Hold," signaling that investors are awaiting concrete evidence that these initiatives can successfully counteract the slowing growth trajectory.