Novo Nordisk’s shares declined 2.4% to 297.8 Danish crowns on Wednesday, extending losses after Deutsche Bank downgraded the stock to Sell from Neutral and cut its price target to 265 Danish crowns from 290.
The downgrade follows mixed second-quarter results released earlier in August, when the company raised full-year guidance despite a slight miss on analyst expectations for the Wegovy obesity treatment. Deutsche Bank’s Emmanuel Papadakis cited ongoing uncertainties ahead of Novo Nordisk’s capital markets day as a key factor in the downgrade.
Sell-side sentiment remains mixed, with 5 Buy, 18 Hold, and 2 Sell ratings tracked following the adjustment. Berenberg had previously downgraded the stock to Neutral on August 12.
Investor focus has intensified on Novo Nordisk’s prescription trajectory for Wegovy, which trailed slightly behind analyst models. Pipeline setbacks, including the failure of the Ziltivekimab cardiovascular study, have also weighed on sentiment. The company’s shares, now trading well below their 52-week high of 410 Danish crowns, remain near levels last seen at the 52-week low of 224.3 Danish crowns.
Competitive pressure is mounting as Eli Lilly expands its lead in the GLP-1 obesity medication segment. The U.S. drugmaker secured its first European regulatory approval for an oral weight-loss treatment in August, directly challenging Novo Nordisk’s Wegovy franchise.
