Key Points
Novo Nordisk shares dropped after slashing full-year sales guidance, primarily due to weakening sales of its blockbuster GLP-1 drugs, Ozempic and Wegovy.
Competition from "compounders" marketing tailored versions of GLP-1 treatments is putting pressure on drug sales.
Despite short-term challenges, Novo stock trades at one of its lowest P/E ratios in the last 30 years.
Shares of Novo Nordisk (NYSE: NVO) are falling this week, down 33% as of 3:27 p.m. ET on Friday. The drop comes as the S&P 500 lost 2.4%, and the Nasdaq-100 lost 2.2%. The Danish pharmaceutical giant's stock was hit after it released disappointing earnings showing that sales of its blockbuster GLP-1 drugs remain weaker than hoped.
Novo Nordisk disappoints
Novo Nordisk was forced to cut guidance for its top-line sales, driven primarily by lagging sales of its GLP-1 drugs, Ozempic and Wegovy. The company says it now expects full-year sales growth of 8% to 14%, down significantly from its earlier range of 13% to 21%. Its guidance for operating profit was cut as well, from between 16% and 24% to between 10% and 16%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Wegovy and Ozempic have been absolute blockbusters for the company, propelling Novo to the most valuable company in Europe before competition from "compounders" -- companies that market their own tailor-made versions using its active ingredients -- impacted sales.
Image source: Getty Images.
Is this a buying opportunity?
I think Novo does have significant issues it must overcome, but I think these fears are overblown. For long-term investors, this seems like a great time to buy in. The company's stock is trading at one of its lowest price-to-earnings ratios (P/E) in nearly 30 years and the lowest in at least five years. This seems like an opportunity to me.
Should you invest $1,000 in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,257!*
Now, it’s worth noting Stock Advisor’s total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.