Novo Nordisk’s Strategic Maneuvers: Price Cuts and Acquisitions Amid Mounting Pressure

Facing a steep decline in its share price and intensifying competition, Danish pharmaceutical giant Novo Nordisk is deploying a dual strategy to protect its market standing. The company has initiated a significant price reduction campaign in the United States while simultaneously finalizing a major acquisition, moves designed to counter potential erosion of its dominant position.

The urgency behind these actions is underscored by recent developments in the competitive landscape. A ruling by an Indian court has granted Sun Pharma permission to manufacture the active ingredient semaglutide for export, gradually chipping away at Novo Nordisk's global monopoly even though domestic sales in India remain barred until the patent expires in 2026. Furthermore, rival Pfizer recently secured access to new obesity drug candidates through a billion-dollar licensing deal, highlighting the sector's fierce competition.

Novo Nordisk's stock, trading at €40.40, reflects this uncertainty, hovering just above its 52-week low. The share price sits approximately 24% below its 200-day moving average, illustrating a sustained downward trend.

Aggressive U.S. Pricing Strategy Unveiled

In a direct response to competitive and political pressures in its crucial U.S. market, Novo Nordisk is slashing out-of-pocket costs for patients. For new patients, the monthly price for starter doses of its blockbuster drugs Wegovy and Ozempic will drop to $199 until the end of March 2026. After this period, the cost will rise to $349—a figure still substantially below the previous price point of $499 per month.

Should investors sell immediately? Or is it worth buying Novo Nordisk?

This defensive maneuver aims to safeguard market share but introduces clear risks to the company's profitability margins. Management is betting that significantly higher sales volumes will compensate for the lower per-unit revenue. The pricing shift also aligns with a forthcoming agreement with the U.S. government for public health programs starting in 2026.

Billion-Dollar Deal for Diversification

Alongside the pricing offensive, Novo Nordisk has formally closed its acquisition of Akero Therapeutics. The all-cash transaction, valued at approximately $4.7 billion, is a calculated step to reduce the firm's heavy reliance on its diabetes and obesity portfolio.

Through this takeover, Novo Nordisk gains access to the drug candidate efruxifermin (EFX), which targets the treatment of metabolic dysfunction-associated steatohepatitis (MASH). This liver disease represents a potential multi-billion dollar market that could fuel future growth. A contingent payment to Akero shareholders is only triggered upon the drug candidate successfully obtaining U.S. regulatory approval.

Investor Focus Shifts to Financial Impact

For shareholders, the immediate concern is the tangible effect of the new pricing policy on the bottom line. The critical question is whether the steep discounts will stimulate sufficient demand to keep overall revenue stable. The market will get its first clues when Novo Nordisk releases its next quarterly results on February 4, 2026. This report will indicate if the Danish company's strategy is paying off or if margin compression is weighing more heavily on the balance sheet than anticipated.