Morgan Stanley downgraded Novo Nordisk to Underweight from Equal-weight. Analysts cited a subdued medium-term growth outlook and the upcoming patent cliff for its blockbuster drug, semaglutide.
The bank warned that current valuations do not reflect the company's heavy reliance on semaglutide. The drug is expected to generate 75% of total sales by 2026. However, its patents are scheduled to expire in the early to mid-2030s.
A proprietary physician survey also indicated potential market share losses to Eli Lilly in the diabetes and obesity sectors over the next 18 months. Novo Nordisk shares dropped approximately 2% in Copenhagen trading following the announcement.