Novo Nordisk (NVO) Stock Falls 27% After FDA Warning on Unreported Semaglutide Adverse Events

Key Points

• On March 5, the FDA dispatched a warning letter to Novo Nordisk regarding inadequate reporting of adverse events associated with semaglutide, found in Ozempic and Wegovy.
• The letter referenced three fatalities, one being a suicide, noting that Novo failed to properly investigate or report the suicide within mandatory timeframes.
• The pharmaceutical giant has a two-week deadline to outline corrective measures to the FDA.
• Novo Nordisk maintains that the warning will not disrupt manufacturing operations or alter its financial projections.
• Shares of NVO have fallen 27% year to date, currently hovering near $38.32.

It’s been a challenging year for Novo Nordisk, and recent regulatory developments are only compounding the pressure.

The Food and Drug Administration delivered a warning letter to the Copenhagen-based pharmaceutical manufacturer dated March 5, highlighting “serious violations” concerning its handling of adverse event reporting for semaglutide, the compound that powers both Ozempic and Wegovy.

Novo Nordisk A/S, NVO

These infractions came to light during a regulatory inspection conducted at one of Novo Nordisk’s New Jersey locations in the previous year.

The correspondence specifically identified three fatalities—two deaths plus one suicide. According to the FDA, the company neglected to properly investigate or submit the suicide report in accordance with regulatory deadlines.

The agency emphasized that it is not establishing causation between the medications and these deaths. Rather, the issue centers on procedural compliance with reporting requirements, not whether the drugs directly caused harm.

Novo Nordisk must inform the FDA within a fortnight about remedial actions planned to address and prevent similar violations going forward.

In its public statement, the drugmaker indicated it has been operating “diligently” to resolve the FDA’s identified concerns. The firm verified that it submitted an original response along with seven subsequent updates to the agency.

Mounting Regulatory Scrutiny

This latest warning represents just one instance in a string of recent regulatory challenges for Novo. Back in December, the FDA sent another warning letter to the company’s Bloomington, Indiana manufacturing plant concerning violations of Good Manufacturing Practice standards.

Additionally, last month saw the FDA dispatch two separate letters condemning advertisements for Ozempic and Wegovy over “false or misleading claims” related to effectiveness and risks. A February 26 correspondence specifically accused Novo of portraying Ozempic as demonstrably better than rival medications.

Despite these setbacks, the pharmaceutical company insists that the most recent warning letter will not impact manufacturing capacity or the financial outlook previously communicated to shareholders.

Shares Decline 27% This Year

NVO shares have experienced significant turbulence in 2026. Trading around $38.32, the stock has shed 27% year to date, representing a substantial retreat from previous peak levels.

The downward trajectory stems from several converging factors—intensifying regulatory scrutiny paired with escalating competition from Eli Lilly, whose competing GLP-1 medication Mounjaro has gained market traction.

Political dynamics have further dampened investor enthusiasm. Health Secretary RFK Jr. has openly criticized Ozempic’s pricing structure, and previously blocked a Biden administration initiative that would have extended Medicare coverage for GLP-1 medications to approximately 7 million beneficiaries.

As of Tuesday afternoon, NVO was changing hands at $38.32.

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