Novo Nordisk shares have fallen roughly 70% from their 2024 high and now sit below their mid-2021 level, leaving a P/E of about 10x versus a five-year average of nearly 24x. The article attributes the slump to Eli Lilly's more effective GLP-1 drugs and Novo's supply shortfalls, which let generics enter the U.S. market early. Novo is shifting toward a high-volume, low-cost model, a change that is weighing on current results but could be offset if demand meets expectations. The company has launched a $2.2 billion share repurchase program and offers a 4.6% yield with a 33% payout ratio. The article argues the market may be overly pessimistic, though the transition will take time.
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