Novo Nordisk shares fall after Trump deal to slash obesity drug prices

STORY: Novo Nordisk shares fell as much as 3% on Friday (November 7) before scaling back.Investors sold off after the Danish drugmaker and U.S. rival Eli Lilly announced a pricing deal with the U.S. government on Thursday (November 6).They have agreed to lower prices of their popular weight-loss drugs, including Novo's Wegovy and Lilly's Zepbound.It should lower monthly prices for cash payers and U.S. government programs like Medicare and Medicaid.It reduces the prices to between $149 and $350, down from its current $500 to $1,000.The deal also gives the companies a three-year relief from tariffs.Analysts expect the price cuts to hit short-term revenue, but potentially boost volumes long term.It come as Novo faces growing competition in the weight-loss drug market, where Lilly's Zepbound and copycat drugs have gained ground.Novo was first to market when it launched Wegovy four years ago, and briefly became Europe's most valuable listed company as demand boomed.But its market value has plunged 70% since last year due to supply constraints and commercial challenges.Novo said the lower prices would have a negative "low single-digit" impact on global sales growth next year.It added bigger volumes under Medicare were expected in the mid- to long term.

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