Novo Nordisk Shares Drop as Eli Lilly Expands Zepbound and Analyst Lowers Price Target

Novo Nordisk Stock Slips Amid Eli Lilly Expansion and Analyst Downgrade

Novo Nordisk (NVO) saw its stock decline by 3.5% on Monday, underperforming the broader S&P 500, as new competitive pressures and a lower price target weighed on investor sentiment.

Eli Lilly Expands Access to Zepbound

The decline followed news that Eli Lilly, a major U.S. pharmaceutical rival, is expanding access to its Zepbound weight-loss drug. Starting in August, Lilly will make all dosages — including the highest-strength options — available to adults with qualifying prescriptions through its website.

Zepbound directly competes with Novo Nordisk’s popular Wegovy. Previously, only lower doses of Zepbound were accessible online. By introducing higher dosages, Eli Lilly strengthens its competitive position and could attract more customers who might otherwise have chosen Wegovy.

Analyst Cuts Novo Nordisk Price Target

Adding to the pressure, J.P. Morgan analyst Richard Vosser reduced his price target for Novo Nordisk’s Denmark-listed shares from 1,000 kroner ($155) to 650 kroner ($101). Despite the lowered valuation, Vosser maintained his overweight (buy) rating, signaling confidence in the company’s long-term prospects.

Investor Reaction Shows Resilience

While both developments posed challenges for Novo Nordisk, the market’s response was measured. The stock experienced a moderate sell-off rather than a sharp decline, possibly reflecting continued optimism around Wegovy’s strong demand in the U.S. Weight-loss medications remain in high demand, and Novo Nordisk’s established reputation may help it weather increased competition in this fast-growing market segment.

This content is for informational purposes only and does not constitute financial advice.