BUZZ-MS cuts Novo Nordisk on growth prospects, patent expiry risks
NVO•Shares fall after the downgrade
Novo Nordisk shares slip 2.4%, sitting among the worst performers on the STOXX 600 STOXX.
Out of 32 analysts, eight rate Novo "strong buy" or "buy", 21 "hold" and three "strong sell" or "sell" - LSEG data.
Broker sees market share pressure and pricing challenges
Morgan Stanley also points to recent U.S. prescription trends and proprietary survey data indicating Novo is losing market share in diabetes and obesity to Eli Lilly's LLY.N treatments.
The brokerage adds that anticipated sales from the upcoming oral obesity franchise will likely not be enough to offset increasing pricing pressures and competition.
Morgan Stanley downgrades Novo Nordisk on medium-term growth concerns
Morgan Stanley downgrades Danish drugmaker Novo Nordisk NOVOb.CO to "underweight" from "equal weight", citing subdued medium-term growth prospects and a significant loss-of-exclusivity risk for semaglutide in the early 2030s.
The broker notes the stock trades at a demanding premium that fails to reflect a looming patent cliff for its diabetes and weight loss drug semaglutide.
