NVO Analysis: Novo Nordisk's 50% Price Slash Creates a Deep-Value Puzzle for GLP-1 Investors
Novo Nordisk (NVO) has gone from the world's most valuable healthcare company to a deep-value opportunity in the span of twelve months. Shares closed at $38.16 on February 25, 2026 — down 59% from their 52-week high of $93.80 and trading at just 10.5x trailing earnings. The Danish pharmaceutical giant hit a fresh 52-week low of $37.65 during today's session on volume 2.6 times the daily average, as investors digested the company's announcement that it will cut U.S. list prices on Ozempic and Wegovy by up to 50% starting in 2027. The price cuts represent a strategic pivot that could reshape the entire GLP-1 market. For years, Novo Nordisk and rival Eli Lilly have commanded premium pricing for their obesity and diabetes drugs — Ozempic and Wegovy carry U.S. list prices above $1,000 per month. By voluntarily halving prices, Novo is betting that volume gains from dramatically expanded insurance coverage and patient access will more than offset the per-unit revenue decline. It is a gamble that pits near-term margin compression against long-term market dominance. For investors, the question is straightforward: does a sub-11x P/E ratio adequately compensate for the margin headwinds ahead, or is the selloff a classic overreaction that creates a generational entry point into the world's dominant GLP-1 franchise? The answer lies in Novo's financial fundamentals, its competitive moat, and whether the company's massive manufacturing investments can deliver the scale needed to make lower prices profitable.