Novo Nordisk shares recorded their worst week on record last week, tumbling 32% as the Danish pharmaceutical giant slashed its annual forecasts and faced renewed pressure from Washington over US drug prices.

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The collapse in share price wiped out over $100 billion in market value, briefly pushing Novo out of Europe’s top 10 most valuable companies. The maker of weight-loss drugs Ozempic and Wegovy now sits at a market capitalization of $213 billion — down 71% from its peak last summer.

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The dramatic sell-off followed a series of setbacks. On Tuesday, Novo warned that cheaper copycat versions of its drugs were eating into its US market share faster than anticipated. Although US regulators had earlier revoked permissions allowing compound pharmacies to produce cheaper versions, Novo said unlicensed competitors remained a significant challenge.

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The company also announced a leadership change, appointing company veteran Maziar Mike Doustdar as CEO after the abrupt exit of Lars Fruergaard Jorgensen. While Doustdar is seen as a steady hand, investors appeared skeptical that the management shakeup alone would be enough to reverse Novo’s declining fortunes.

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The pressure intensified on Friday, when President Donald Trump renewed his attacks on high drug prices, demanding pharmaceutical companies — including Novo — cut the cost of medicines sold in the United States. The intervention triggered a broad sell-off in healthcare stocks, compounding Novo’s sharp losses.

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Once a poster child of Europe’s booming healthcare sector, Novo’s rapid descent has been marked by missed expectations, increasing competition from Eli Lilly’s rival drugs, and delays in bringing new treatments to market. The company, which had briefly reclaimed its position as Europe’s most valuable firm in June, now finds itself in a battle to win back investor trust and stabilize its core weight-loss business.

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Novo is set to report its second-quarter results on Wednesday. All eyes will be on whether the company can provide clarity on its strategy to fend off competition and address the pricing concerns that have rattled markets.

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