Novo Nordisk’s shares declined 2.4% to 297.8 Danish kroner on Tuesday, extending losses from earlier this month after Deutsche Bank downgraded the stock to Sell and trimmed its price target.
The downgrade, issued by analyst Emmanuel Papadakis, cited material uncertainty ahead of Novo Nordisk’s capital markets day and followed mixed second-quarter earnings results released on August 4. While management raised its full-year guidance, investors focused on a slightly weaker-than-expected prescription trajectory for the Wegovy obesity treatment, contributing to the selloff. The company’s pipeline faced additional headwinds after the cardiovascular trial for Ziltivekimab failed, further pressuring sentiment.
Deutsche Bank reduced its price target to 265 kroner from 290 kroner, bringing its rating in line with Berenberg, which downgraded Novo Nordisk to Hold on August 12. The move shifted the sell-side consensus to five Buy, eighteen Hold, and two Sell ratings. Share buybacks provided limited support amid the broader decline.
Competitive pressures intensified as Eli Lilly secured its first European regulatory approval for an oral weight-loss treatment in August, challenging Novo Nordisk’s dominance in the GLP-1 obesity drug market. The approval underscores the accelerating rivalry in the sector, where oral formulations are gaining traction over injectable therapies.
Broader U.S. equity benchmarks showed modest gains, with the S&P 500 and Nasdaq trading higher, though Novo Nordisk’s underperformance contrasted with the broader market trend.
