Novo Nordisk’s shares declined 2.4% to trade at 297.8 Danish kroner on Tuesday, extending a retreat from the 52-week high of 410 kroner recorded earlier in the year.
Deutsche Bank downgraded the stock to Sell from Hold, citing mixed second-quarter results and lingering uncertainty ahead of the company’s capital markets day. The bank also reduced its price target to 265 kroner from 290 kroner. Analyst Emmanuel Papadakis attributed the move to concerns over the trajectory of Wegovy prescriptions and pipeline setbacks, including the failed Ziltivekimab cardiovascular trial.
The downgrade brought the sell-side consensus to five Buy ratings, 18 Hold ratings and two Sell ratings. Berenberg had already downgraded Novo Nordisk to Hold on August 12.
The company’s shares have staged a partial recovery from their 52-week low of 224.3 kroner but remain under pressure as investors weigh competitive dynamics in the GLP-1 obesity drug market. Eli Lilly, Novo Nordisk’s primary rival, secured its first European approval for an oral weight-loss treatment in August, intensifying competition for Wegovy.
Novo Nordisk’s upcoming capital markets day is seen as a pivotal event for clarifying its strategic direction amid these challenges. The company’s ongoing share buyback program has provided limited support against the recent downward drift in its share price.
U.S. equity benchmarks advanced modestly on the day, with the S&P 500 and Nasdaq up, indicating that the weakness in Novo Nordisk was company-specific rather than driven by broader macro factors.
