Novo Nordisk shares fell 7% on Tuesday after U.S. rival Eli Lilly released positive results from a late-stage trial of its oral weight loss drug, orforglipron. The news sent shockwaves through the European healthcare sector, with the regional Stoxx Healthcare index down 1.5% by 9 a.m. London time. Novo Nordisk and Zealand Pharma tumbled to the bottom of the index, both down around 8.4%.
The steep drop in Novo Nordisk’s stock price reflects investor concerns about increased competition in the lucrative obesity drug market. European markets returned from the long Easter weekend on a negative note, amid continuing jitters around the U.S. economy and global trade. The pan-European Stoxx 600 index was 0.3% lower by 10:10 a.m. in London, with most sectors and all major bourses in negative territory.
Tech stocks led regional losses, with the Stoxx Europe Technology index down 1.5% during early morning trade.
Fed pressure and market impact
Concerns are lingering around the possibility of a global trade war erupting, with Beijing expected to retaliate against countries that follow Washington’s calls to isolate China.
This is further compounded by remarks from U.S. President Donald Trump urging the Federal Reserve to cut interest rates. Asia-Pacific markets were subdued overnight, tracking Wall Street’s sell-off. Traders will also be monitoring discussions from the IMF-World Bank Spring meetings in Washington this week, where U.S. tariffs are likely to be a major topic.
The U.S. dollar has been on a largely downward trajectory since recent tariff announcements by the Trump administration sparked widespread market volatility earlier this month. The euro was around 0.2% higher against the dollar by 7:08 a.m. in London, trading at $1.154. Meanwhile, the British pound gained almost 0.3% against the greenback to trade at $1.341, and the Swiss franc was 0.1% higher.
