Novo Nordisk (CPSE:NOVO B): Assessing Valuation After Trump’s Drug Price Push and Strategic Expansion

Shares in Novo Nordisk (CPSE:NOVO B) moved sharply this week after President Trump announced plans to lower U.S. prices for weight-loss and diabetes drugs like Ozempic. The announcement prompted heightened volatility and renewed investor questions about the company’s future profit outlook.

See our latest analysis for Novo Nordisk.

Novo Nordisk’s share price has been on a roller coaster, down over 46% year-to-date and recently tumbling after U.S. policy signals on drug pricing, despite headline-making deals such as acquiring rights to the rare-disease therapy zaltenibart. While momentum has faded in the short term, a 5-year total shareholder return of nearly 68% shows the franchise’s enduring strength even as competition and regulatory scrutiny intensify.

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With shares at a steep discount to analyst targets after major policy shocks, investors are left to wonder if Novo Nordisk now offers hidden value or if the market is already bracing for more growth challenges ahead.

Most Popular Narrative: 59.7% Undervalued

Novo Nordisk’s most widely followed valuation narrative puts the company’s fair value far above its recent closing price, setting the stage for a valuation debate fueled by bold financial projections and significant growth bets.

Novo Nordisk has built a formidable economic moat ("Burggraben") through decades of expertise in diabetes care, world-class manufacturing, and a trusted global brand. With the unexpected success of its obesity drugs, the company has effectively gained a highly profitable new business segment almost for free, built on the same scientific platform. This windfall is now driving large capital inflows, which Novo Nordisk is wisely reinvesting to secure its leadership for decades to come.

Read the complete narrative.

Ready to find out how this fair value was calculated? Explore the full narrative to discover the key assumptions, future profit multiples, and notable growth projections driving this eye-catching target. Learn more about the logic behind this valuation increase.

Result: Fair Value of $851.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heightened regulatory scrutiny or increased biosimilar competition could challenge Novo Nordisk’s outlook and reshape investor sentiment in the future.

Find out about the key risks to this Novo Nordisk narrative.

Build Your Own Novo Nordisk Narrative

If our perspective doesn't quite match your thinking, or if you’d rather dive into the numbers yourself, you can easily craft your own narrative in just a few minutes. Do it your way

A great starting point for your Novo Nordisk research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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