Morgan Stanley Upgrades Novo Nordisk to Equal Weight, Cuts Target to $40, FDA Approves Three Indications
Novo Nordisk was upgraded by Morgan Stanley to Equal Weight from Underweight with its price target cut to $40 from $42, reflecting mid-term growth uncertainty after the REDEFINE-4 selloff and semaglutide exclusivity risks. The FDA approved once-weekly Sogroya for three pediatric growth hormone indications, marking the first long-acting option.
1. Morgan Stanley Rating Adjustment
On March 3, Morgan Stanley upgraded Novo Nordisk to Equal Weight from Underweight and lowered its price target to $40 from $42. The firm cited the post-selloff valuation following REDEFINE-4 data, mid-term growth uncertainty and rising semaglutide exclusivity risks as key factors in its decision, noting that consensus estimates have been rebased.
2. FDA Approves Three Sogroya Indications
On February 27, the FDA approved Novo Nordisk’s once-weekly somapacitan-beco (Sogroya) injections in 5 mg, 10 mg and 15 mg doses for children aged at least 2.5 years with idiopathic short stature, small for gestational age without catch-up growth by age two, and growth failure due to Noonan Syndrome. This marks the first long-acting growth hormone therapy for these conditions in the US and offers a weekly alternative to daily injections, easing treatment burden.