European stocks close up; Novo Nordisk logs its biggest daily drop on record

European stocks closed higher on Tuesday, buoyed by financials and defence stocks, though Danish stocks logged their biggest one-day drop of the year as Novo Nordisk's shares slid after the weight-loss drug maker issued a profit warning.

The Wegovy producer , once a market darling, logged its biggest one-day drop on record of 23%, wiping about $57.5 billion off its market value, as it slashed its outlook for 2025 sales growth and named a new CEO as it battles rising competition in the obesity drug market.

The stock weighed on Denmark's Copenhagen OMX index , which lost 11.9%, while the broader STOXX pharmaceutical sector  slid 1.6%.

"It's doubly disappointing for investors when you find a company that had been anticipated to be a real star in a booming sector, and they don't seem to be able to capitalize on what was a really good competitive position," said Danni Hewson, head of financial analysis at AJ Bell.

The stock "seems to be getting pummeled" by its U.S. rival, Eli Lilly, Hewson said. "Now we are seeing a change in CEO, but investors are not going to give the new guy an awful lot of time to get the house in order."