To The Moon

Even before pharma giant $Novo-Nordisk A/S(NVO)$ has the chance to report its quarterly earnings on 06 Aug 2025, its share has already taken a beating on Wall Street. On Thu, 31 Jul 2025, NVO fell as much as -6% at one point, making it their lowest point since August 2021. (see below) NVO stock price backed to 3 years ago The latest drop wiped out almost all profit gained since NVO released its blockbuster weight-loss drug, Wegovy. The fall comes after Trump sent letters to 17 major pharmaceutical firms on Thu, 31 Jul 2025, (NVO inclusive), demanding them to cut drug prices in the US. (see below) The 17 pharmaceutical companies that received Trump’s letter: BOLD = Top 10 pharma companies based on market capitalization. That prompted share price declines across the sector. Actually, even before Trump’s “demanding” letter, NVO shares had fallen by a whooping -21.823% on Tue, 29 Jul 2025. (see below) The steep drop was due to : NVO cutting its 2025 sales growth forecast (for the 2nd time in 2025), due to competition, from copycat versions of Wegovy. NVO announcement that experienced company insider Maziar Mike Doustdar will be the new CEO. NVO new CEO - Maziar Mike Doustdar Market reacted ‘negatively’ to NVO’s new CEO. It stems from skepticism about Doustdar having specific experiences needed to turn around NVO’s faltering position in US — a key battleground for NVO's blockbuster Wegovy. NVO became Europe's most valuable listed company following the launch of Wegovy in June 2021. By mid-2024, it was worth some $650 billion. But its shares have since plunged by more than -⅔ (or -67%), on concerns the drugmaker is losing ground in the obesity drug race. On Fri, 01 Aug 2025, Novo's shares recovered marginally by +2.38%, capping the week’s losses to -32.13%, its worst week ever, and market cap reduced to $213.98 billion. In an emailed statement, NVO noted: The US healthcare system is complex. And will continue to work to find solutions that help people access the medicines they need at affordable prices. According to Nordnet, Analyst, Per Hansen: Trump does not have the mandate to tell Novo Nordisk or any other pharma companies, how to price their products in the US. Investors are just panicking about the risk of another downgrade. The pressure to lower prices is adding to Novo's problems in the US, its biggest market. NVO faces competition from (a) $Eli Lilly(LLY)$, (b) $Roche Holding Ltd(RHHBF)$ and (C) compounders, that make custom-medicines using the same ingredients as the branded drugs. Hansen further added, Trump’s letter to NVO and others is more than just a repricing per se, it is: A repricing of the obesity market. A repricing of US as the world’s most attractive drug market. Finally, a repricing of risk from Trump. My viewpoints : (mine only) If history is anything to go by, think it should take about a week for the latest tariff scarce to simmer down. If Trump is sufficiently ‘smart’, he should have some tricks to pull out from his sleeves, next week and calm US market in the process. Just like what he did after the “reciprocal tariff” announcement, that caused US market to plunge in early April 2025. I think none of the major pharmaceutical companies’ CEOs will be gung-ho enough to go against the thug-like President of the world’s biggest economy, for fear of reprisal. After all that has been said, is it just me OR is the pharma industry looking a lot less profitable going forward ? Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Jobs Report Is In. What's Next for the Fed ? Tue, 05 August. Picked post. Is Palantir (PLTR) a Buy, Sell or Hold ? Mon, 04 August. Idea post. Is Inflation Returning To US Market Soon ? Fri, 01 August. Picked post. Do you think Novo Nordisk has a chance to recover sales in US obesity market ? Do you think Trump will be able to get all major pharma companies to reduce drugs’ prices charged in US ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents