Shares of Novo Nordisk A/S (NVO) plummeted 5.03% during Wednesday's trading session, following news that the company is under investigation by Spain's ministry of health. The probe concerns the pharmaceutical giant's website communications about its weight-loss drug, which could potentially violate advertising regulations for prescription medications.
According to a statement from the Spanish government body, the communications on Novo Nordisk's website "could be considered as covert advertising of prescription drugs, which is prohibited by current legislation." The ministry has sent a request for clarification to the company regarding its "Obesity Without Filters" online awareness campaign, which appeared to have been taken down following the investigation announcement.
This development comes at a sensitive time for Novo Nordisk, as the company faces increasing competition in the growing weight-loss drug market. The investigation adds to previous criticism the company has faced in the UK over its promotional practices. Last year, Novo Nordisk was temporarily suspended from the UK's pharmaceutical industry association for breaching the country's code of practice for drugmakers, though its membership has since been restored.
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