Novo Nordisk's shares tumbled over 5% in intraday trading on Friday, as the company's blockbuster weight-loss drug Wegovy and diabetes treatment Ozempic landed on Medicare's list of drugs facing price negotiations, potentially leading to significant price cuts starting in 2027. This development came amid growing competition from Eli Lilly's rival drugs, putting pressure on Novo Nordisk's dominant position in the obesity and diabetes markets.

While Novo Nordisk reported positive results from a Phase 3b trial showing that a higher 7.2mg dose of Wegovy led to an average weight loss of 20.7% in patients over 72 weeks, this news was overshadowed by the Medicare pricing announcement. The trial data, though encouraging, failed to alleviate investor concerns about the potential impact of the upcoming price negotiations and intensifying competition from Eli Lilly's offerings.

Analysts and experts highlighted that the Medicare price negotiations could result in substantial savings for the government healthcare program and patients, potentially denting Novo Nordisk's sales growth for its flagship products. However, the company's semaglutide drugs are still expected to see robust global sales growth in the coming years, driven by increasing demand for effective weight-loss and diabetes treatments.