Novo’s stock tumbles after two-year GLP-1 boom as AI drug-discovery startups land huge funding rounds

Novo’s shares, which peaked above $140 in June 2024 during a surge in demand for its GLP-1 drugs Ozempic and Wegovy, have fallen sharply over the past two years. The decline reflects a broader market correction for the obesity and diabetes segment.

The company cites increased competition from rivals such as Eli Lilly, pricing pressure in the United States, disappointing clinical trial results for several pipeline candidates, and the impending expiration of key GLP-1 patents as drivers of the slide. In response, Novo recently held a capital markets day to outline its strategy for stabilizing growth.

At the same time, venture capital investors have poured large sums into AI-driven drug discovery startups, with several firms announcing multi-million‑dollar fundraising rounds. These “megarounds” highlight growing confidence in artificial‑intelligence approaches to early‑stage drug development.