Novo Shares Tumble on Forecast for Steep Drop in Sales (1)

Novo Nordisk A/S shares plunged after the company shocked investors by forecasting a steep decline in sales, evidence of an intensifying price war in obesity drugs.

Sales will fall by as much as 13% this year, the company said Tuesday. Pressure from lower prices for its blockbuster weight-loss drugs, in part due to the US government’s push to cut prices, will contribute to the decline.

“It really paints a picture of a challenged Novo,” Lars Hytting, head of trading at ArthaScope, an investor in the Danish drugmaker, said in an interview. “Even the most skeptical analyst” didn’t anticipate this ...