Novo Nordisk Faces Pressures as U.S. Pricing Policies Loom

The Danish pharmaceutical giant Novo Nordisk A/S experienced a sharp decline in its share price on Friday, October 19, 2025, following remarks by former U.S. President Donald Trump on drug pricing. The announcement that the U.S. administration would reduce tariffs on fertility treatments and the GLP‑1 medication Ozempic triggered a sell‑off that sent the stock down by as much as 6.4 % in Denmark, with a comparable decline observed in German markets.

Trump’s Pricing Initiative

President Trump’s proposal would exempt manufacturers investing in U.S. production and research from import duties on fertility treatments (IVF) and Ozempic. The move, aimed at reducing costs for patients, was met with skepticism by investors. Critics argued that the policy could undermine Novo Nordisk’s pricing power and erode profit margins, particularly in the United States—the company’s largest market.

Rybelsus FDA Approval

Amid the turmoil, Novo Nordisk announced a significant milestone: the U.S. Food and Drug Administration approved Rybelsus, its once‑daily GLP‑1 pill, for the reduction of cardiovascular risk in patients with type 2 diabetes. The approval, received on October 18, follows clinical data demonstrating a 12 % relative risk reduction for major cardiovascular events. While the announcement was positive, the market’s reaction was muted by the pricing drama.

Strategic Response

In response to the heightened political scrutiny, Novo Nordisk appointed Greg Miley, a seasoned U.S. pharmaceutical executive, as its new global head of corporate affairs. Miley’s experience will be pivotal in navigating the regulatory environment and mitigating the impact of U.S. pricing policies. His role underscores the company’s commitment to maintaining a robust presence in the U.S. market while managing external pressures.

Market Context

The broader market experienced volatility on Friday, with European indices reacting to both political developments and corporate earnings. While technology stocks endured a brief downturn, the health‑care sector remained relatively resilient, buoyed by continued demand for diabetes and obesity treatments. Nevertheless, Novo Nordisk’s share price reflected the sensitivity of pharma equities to policy shifts in the United States.

Outlook

Novo Nordisk’s 52‑week high of DKK 816 and low of DKK 287.6 illustrate the company’s historical volatility. With a market capitalization of 1.16 trillion DKK and a price‑earnings ratio of 14.04, the firm remains a key player in the global health‑care landscape. The recent events highlight the delicate balance between regulatory influence and corporate strategy, a balance that will shape the company’s trajectory in the coming quarters.