Morgan Stanley downgraded Novo Nordisk to Underweight from Equal-weight. The bank cited a subdued mid-term growth outlook and risks from a looming patent cliff for semaglutide.
Semaglutide is the active ingredient in Ozempic and Wegovy. It accounts for approximately 75% of the company's projected 2026 sales. The drug faces patent expiration in the early 2030s.
Analysts argued that Novo Nordisk's valuation does not fully reflect these long-term challenges. The report projected slower growth for the company compared to its European pharmaceutical peers. Morgan Stanley maintained its price target of 250 Danish crowns.
Novo Nordisk shares dropped between 2.6% and 2.8% in early Copenhagen trading. The decline followed concerns over potential market share losses to competitors.