Novo Nordisk Faces a Legal Double Header as Earnings Approach
Published on 07/30/2026 at 13:31 | Redaktion boerse-global.de
The Danish pharmaceutical heavyweight is fighting on two legal fronts just days before a pivotal earnings report, with courtroom battles in New Jersey threatening to overshadow the commercial momentum of its blockbuster obesity franchise.
Novo Nordisk has filed a lawsuit against Eli Lilly in a New Jersey federal court, accusing its biggest rival of running misleading advertising campaigns for its diabetes and weight-loss drugs. The complaint centers on Lilly’s use of outdated clinical data in its marketing materials, specifically comparing Lilly’s highest doses against lower doses of Novo’s treatments. The Danish company argues that these comparisons ignore newer data on the high-dose version of Wegovy, which only received regulatory approval this year. Chief Legal Officer John Kuckelman said omitting current data could mislead consumers into believing Lilly’s products are more effective.
The legal action follows a cease-and-desist letter sent in April that went unanswered by Lilly. Novo is now seeking a permanent injunction against the advertising campaigns, along with unspecified damages.
But that is not the only legal headache for the company. On Wednesday, U.S. District Judge Robert Kirsch dealt Novo a setback by refusing to dismiss a shareholder class-action lawsuit tied to the CagriSema clinical trial. The plaintiffs allege that Novo misled investors about the design of the REDEFINE-1 study, which used a flexible dosing regimen that saw only 57 percent of participants reach the highest dose. Judge Kirsch ruled there was sufficient evidence that Chief Scientific Officer Martin Holst Lange may have acted intentionally when making public statements about the trial, allowing the case to proceed to discovery. The court did, however, dismiss the claim that the originally targeted 25 percent weight reduction was a binding promise, calling it an “aspirational” goal.
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The CagriSema saga dates back to December 2024, when trial results showed participants lost an average of 20.4 percent of their body weight on an intent-to-treat basis — and 22.7 percent among those who completed the study — both falling short of market expectations. The stock cratered 17.83 percent in New York and 20.7 percent in Copenhagen, wiping out roughly $72 billion in market value. Novo has denied all allegations and vowed to continue defending itself.
A Stock Recovering, but Still Scarred
In German trading, Novo Nordisk shares closed Wednesday at €45.12, up 1.02 percent on the day and 6.55 percent over the past seven sessions. That recovery still leaves the stock 17.75 percent below its 52-week high of €54.86, hit in January — a gap largely attributable to the CagriSema disappointment. The current price sits nearly 47 percent above the March low of €30.25, though the relative strength index of 60 suggests the stock is in neutral-to-slightly-overbought territory. At roughly 9 percent above its 50-day moving average of €40.86, the cushion could evaporate quickly if the upcoming earnings disappoint.
Institutional investors remain divided. Bank of New York Mellon cut its position by 21.7 percent, selling more than 130,000 shares, while Sei Investments went the other direction, boosting its stake by 53.7 percent.
Earnings, Price Cuts, and the Wegovy Pill
All eyes now turn to Wednesday, August 5, when Novo Nordisk reports second-quarter results before the market opens. The first quarter saw Ozempic and Wegovy generate combined revenue of 63.2 billion Danish kroner, representing 65 percent of total group sales. Investors will be watching closely for sales figures on the new Wegovy tablet, which surpassed 3 million prescriptions written in the U.S. since its January launch and received European approval in July. The oral version of Ozempic also secured U.S. regulatory clearance in May.
Yet the company has warned that adjusted revenue and operating profit will decline this year, a forecast that prompted Zacks Investment Research to assign the stock its lowest “Strong Sell” rating. Adding to the pressure, Novo announced it will slash U.S. list prices for its GLP-1 drugs by up to 50 percent starting January 2027, setting a uniform price of $675 per month for Wegovy, Ozempic, and Rybelsus — down from the current $1,350 for Wegovy. The move aims to ease the burden on insured patients with high out-of-pocket costs, while Medicare beneficiaries already benefit from a negotiated price of $274.
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The company has also increased its share buyback program by 1 billion Danish kroner, signaling confidence in its long-term prospects even as near-term headwinds mount.
For Novo Nordisk investors, the coming days represent a convergence of legal, commercial, and regulatory events that will test whether the obesity franchise can continue to outrun the growing list of challenges.
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