Novo Nordisk shares fell 7% on Tuesday after rival drugmaker Eli Lilly reported positive results from a late-stage trial of its oral weight-loss drug, Orforglipron. The news sent shockwaves through the healthcare sector, with the Stoxx Europe Healthcare index down 1.5% by 9 a.m. London time. Shares of Danish pharmaceutical company Novo Nordisk and Zealand Pharma both dropped around 8.4% following Eli Lilly’s announcement.
The U.S. company’s promising obesity drug trial results signal increased competition in the lucrative market for weight management treatments. European markets overall moved lower on Tuesday, with the pan-European Stoxx 600 index down 0.3% by 10:10 a.m. in London. Most sectors and all major bourses were in negative territory, with tech stocks leading regional losses.
The Stoxx Europe Technology index fell 1.5% during early morning trade. Lingering concerns about a potential global trade war, especially with China, continue to weigh on investor sentiment.
Eli Lilly results hit Novo Nordisk
President Donald Trump has also recently increased pressure on the Federal Reserve to cut interest rates, calling Fed Chairman Jerome Powell “Mr. Too Late” and a “major loser.”
In other market news, Stockholm-listed shares of Swedish biotech firm Biotage jumped 56.1% by 10:25 a.m. in London, following a $1.2 billion buyout offer from private equity giant KKR. Biotage’s Board of Directors has recommended that shareholders accept the offer.
Swiss pharmaceutical giant Roche also announced on Tuesday that it would invest $50 billion in the U.S. over the next five years, in response to potential new White House tariffs on pharma goods. Despite the announcement, Roche shares were down 1.2% at 8:43 a.m. in London. On the currency front, the euro, British pound, and Swiss franc all made gains against the weakening U.S. dollar.
The dollar has been sliding since Trump’s tariffs created market volatility earlier this month, with market sentiment indicating further potential declines for the greenback. Traders will be monitoring news from the IMF-World Bank Spring meetings in Washington this week, where discussions are likely to center around the fallout from President Trump’s tariffs. While no major earnings or data releases are expected from Europe today, markets remain cautious amid the uncertain global economic outlook.
