Concentrated stock holdings can be risky. Novo Nordisk is just the latest poster child for this fact that everyone knows, but not everyone wants to do something about.
Novo Nordisk has fallen from a high of about $142 per share in June 2024 to about $51 per share in August 2025. Novo Nordisk is no longer in the list of Europe’s top ten most valuable companies,[1] and recently had its worst weekly performance in decades when shares fell 30% in one week.[2]
Regardless of exactly why the market is so bearish on Novo Nordisk (multiple factors include competition from Eli Lilly’s drug Zepbound, and so-called ‘compounders’ making medicines that mimic Novo Nordisk’s most popular drugs[3]) the sharp decrease points to a larger problem: the issue of holding a concentrated position in over-valued stock.
In fact, in January 2024, we suggested that Novo Nordisk potentially represented significant excess risk.
We also suggested a way for owners to take their profits off the table, without incurring capital gains tax. It’s called a Stock Diversification Trust, and it can help you (or your clients) avoid paying capital gains tax when selling.
Please call us to see whether a Stock Diversification Trust might be a good solution. You can also ask us for a free copy of our Advisor Guide on stock diversification. Click here for a free copy of our Advisor’s Guide to Stock Diversification. You can also call 703-437-9720 and ask for Katherine, or email us at [email protected]. Here’s a chart of Novo Nordisk’s stock price.
And in case you’re interested, here’s what we wrote back in January of 2024:
[1] https://www.nytimes.com/2025/08/07/business/ozempic-wegovy-novo-nordisk-decline.html
[2] https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-ceo-warns-layoffs-wegovy-challenge-heats-up-2025-08-06/
[3] https://www.reuters.com/business/healthcare-pharmaceuticals/novo-nordisk-ceo-warns-layoffs-wegovy-challenge-heats-up-2025-08-06/
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