COPENHAGEN, March 20, 2026, 00:42 CET
Novo Nordisk slipped 1.5% to 237.90 Danish crowns in Copenhagen on Thursday, despite the FDA signing off on a higher-dose Wegovy injection. The stock remained in the red after Eli Lilly unveiled new obesity drug results, and as Reuters flagged that semaglutide patent expiry in India could clear the way for lower-cost generics of the compound found in both Wegovy and Ozempic.
That’s become a real concern now, with Novo still scrambling to reassure investors after a rough February. On Feb. 4, the company projected that both 2026 sales and operating profit could slide by up to 13%. Later in the month, on Feb. 23, Reuters reported Novo shares tumbled more than 16% after CagriSema—its next-gen obesity hopeful—fell short against Lilly’s competing drug in a direct trial.
The FDA cleared Wegovy HD, a new 7.2-milligram weekly shot, using its National Priority Voucher program—an approach that slashes review time to just one or two months instead of the typical 10 to 12. Novo reported that patients on the higher dose in its 72-week STEP UP study saw average weight loss hit 20.7%, compared with 17.5% for those on the existing 2.4-mg injection. The company aims to roll out the drug in the U.S. in April with a single-dose pen. Wegovy falls under the GLP-1 category, treatments that hone in on a specific hormone pathway to fight obesity.
Novo CEO Mike Doustdar said the approval allows the company to deliver “even greater weight loss of approximately 21%.” BMO Capital Markets’ Evan Seigerman described the move as “a step in the right direction,” but added that Novo is still up against “an uphill battle” to reclaim market share from Lilly. Novo Nordisk
Lilly wasn’t sitting idle. The U.S. pharma giant reported that retatrutide, a weekly injection targeting three hormone receptors, reduced A1C by 1.7 to 2.0 points and slashed body weight by as much as 15.3% in a phase 3 trial involving type 2 diabetes patients. “Highest weight-loss levels I’ve seen from an obesity drug to date,” Scotiabank’s Louise Chen remarked. Reuters
India is set for a new round of competition as Novo’s semaglutide patent ends this week. Reuters says over 40 domestic pharma firms are gearing up with more than 50 brands ready to hit the market—Sun Pharma, Dr. Reddy’s, Zydus, Lupin included. With early generics launching, the monthly price for the lowest dose could fall sharply, moving from about 11,000 rupees down to somewhere between 3,000 and 5,000 rupees. But independent analyst Salil Kallianpur cautions: more brands, lower prices—those could drive misuse and force regulators to step in down the road.
The equation’s clear: fresh approvals might not counteract price declines quickly enough. On Feb. 4, Novo flagged a projected 5% to 13% drop in 2026 sales and operating profit, citing lower realised prices, tough competition, and patent loss in certain markets outside the U.S. CFO Karsten Munk Knudsen told Reuters that U.S. sales alone could fall somewhere in the “teens.” Reuters
The landscape for obesity drugs isn’t what it was. Last month, Jefferies analyst Michael Leuchten declared the much-hyped $150 billion market “is gone” as falling prices and mounting competition forced a rethink. Thursday brought Novo a straightforward regulatory victory, but shares still finished the session down. Reuters
