Issues over Novo Nordisk’s development course is leading Bank of America to step to the sidelines. The bank devalued the Danish pharmaceutical giant to neutral from buy and reduced its cost target to $60. That upgraded target still indicates more than 11% upside from Tuesday’s close. “We have a Neutral ranking on Novo Nordisk provided c7% 2026- 31E sales CAGR with Wegovy and Ozempic patterns looking harder in 2H25 with additional pressures into FY26-27 consisting of Canada semaglutide [loss of exclusivity] and [Inflation Reduction Act] effects,” expert Sachin Jain composed in a Wednesday note. NVO mountain 2025-07-28 NVO, week-to-date The downgrade begins the heels of U.S.-listed shares plunging almost 22% throughout Tuesday’s session after the business slashed its full-year projection, mentioning weaker development expectations in the 2nd half of the year for its smash hit weight problems drug Wegovy. It stated in a declaration that this “shows the relentless usage of intensified GLP-1s, slower-than-expected market growth and competitors.” Jain kept in mind the absence of clearness surrounding the timeline for dealing with the intensifying as the primary headwind. Furthermore, the expert indicated Ozempic just returning low-single-digit-percentage development, keeping in mind a “harder” second-half outlook for the drug along with the possibility of prices cuts ahead. “For Ozempic, Canada patent expiration in FY26E not yet shown in [consensus], along with unidentified effect for prospective U.S. importation from Canada. In addition, danger from individual retirement account prices provided the U.S. admin’s ongoing effort to lower drug costs in the U.S. to be interacted 2H25,” the expert composed. Over half of Wall Street is still bullish on the name, nevertheless, with 9 out of 16 overall experts covering it having a strong buy or purchase ranking, per LSEG information. The stock has actually likewise come under substantial pressure this year, falling more than 37%.
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