Shares of Novo Nordisk A/S (NVO) surged 5.02% in pre-market trading on Tuesday, as the Danish pharmaceutical giant made strategic moves to strengthen its position in the competitive weight-loss drug market. The company's decision to slash prices of its blockbuster weight-loss drug Wegovy in India, coupled with positive analyst sentiment, drove the stock higher.

Novo Nordisk cut the price of Wegovy by up to 33% in India, according to a document seen by Reuters. This aggressive pricing strategy comes just days after rival Eli Lilly's Mounjaro became India's top-selling drug by value in October. The highest dose of Wegovy (2.4 mg) will now cost 16,400 rupees ($186.59), down from 24,389.06 rupees, while the lowest dose (0.25 mg) will sell at 10,850 rupees, compared to the earlier price of 16,260.94 rupees. This move is seen as a direct response to competition in the rapidly growing Indian market for weight-loss treatments.

Adding to the positive sentiment, analysts from Deutsche Bank and AlphaValue expressed optimistic views on Novo Nordisk's prospects. Deutsche Bank analyst Emmanuel Papadakis suggested that the recent stock punishment seems overdone, highlighting upcoming key events such as the expected results from a study on semaglutide for Alzheimer's disease and the launch of the Wegovy weight-loss pill. AlphaValue analyst Abhishek Raval pointed out that Novo Nordisk's deal with the U.S. government to lower weight-loss drug prices, while potentially impacting near-term sales growth, would significantly expand patient access through Medicare and Medicaid. This expanded access could offset the negative impact on sales, a factor that might be overlooked by the market.