Novo Nordisk Faces Shareholder Scrutiny Amid Generic Drug Onslaught

Novo Nordisk convenes its annual general meeting this Thursday against a backdrop of significant challenges. Two pivotal events define the current landscape for the pharmaceutical giant: the expiration of its semaglutide patent in India and the imminent gathering of its shareholders in Copenhagen.

Shareholder Meeting Under a Cloud

Scheduled for March 26 at 2:00 PM CET, the meeting will be held both physically in Copenhagen and virtually. Shareholders will vote on all board positions nominated by shareholders. The board has proposed the re-election of Lars Rebien Sørensen as chairman and Cees de Jong as deputy chairman. New nominees include Helena Saxon, Jan van de Winkel, and Ramona Sequeira.

This gathering occurs in the shadow of a disappointing forecast issued earlier this month. Novo Nordisk projected a decline in both revenue and operating profit of 5 to 13 percent for 2026, a outlook that took many market participants by surprise. Consequently, investors will be closely watching how convincingly management defends its strategy for protecting profit margins.

Indian Patent Expiration Unleashes Competition

The market for semaglutide in India opened up on March 20 following the patent’s expiration. More than forty generic drug manufacturers are now rushing to enter the market. Companies that have already announced products or are near launch include Sun Pharma, Dr. Reddy’s, Cipla, Biocon, and Mankind. Natco Pharma and Eris Lifesciences had their own products on the market on the very day the patent lapsed.

Natco’s generic version is available under the brand names Semanat and Semafull, priced approximately 90 percent below the original drug. Market analysts anticipate that the monthly cost for the lowest dosage could fall from around 11,000 rupees to between 1,500 and 2,500 rupees in the medium term.

Should investors sell immediately? Or is it worth buying Novo Nordisk?

In anticipation, Novo Nordisk had already reduced the price of injectable semaglutid in India by 37 percent. However, the company has signaled no willingness to engage in a direct price war. According to Vikrant Shrotriya, the company’s India managing director, competition will be decided more by scientific evidence, manufacturing quality, and physician trust than by the lowest price.

Wegovy HD Offers a Point of Differentiation

One day before the Indian patent expiry, Novo Nordisk received U.S. FDA approval for Wegovy HD—a higher-dose version of its weight-loss medication containing 7.2 mg of semaglutide, compared to 2.4 mg in the current formulation. A U.S. launch is planned for April.

In the clinical trial STEP UP, Wegovy HD achieved a mean weight loss of 20.7 percent over 72 weeks. Approximately one-third of participants lost more than 25 percent of their body weight. This higher dosage is not covered by the patents currently being challenged by Indian generic makers, providing at least a short-term differentiating factor for Novo Nordisk.

In the company’s core markets of Europe and the United States, the semaglutide patent does not expire until 2031 to 2032, meaning generic pressure in these regions remains limited for now.

The company’s shares are currently trading near their 52-week low and have lost roughly 29 percent since the start of the year. Thursday’s annual general meeting will reveal whether management can provide answers that restore investor confidence.