Investing.com -- Novo Nordisk (NYSE:NVO) faces mixed sentiment from Wall Street as it navigates the fallout from disappointing CagriSema data.
Jefferies remains cautious, cutting its price target by 10% to DKK515 from DKK575 given manufacturing challenges and tolerability concerns. The brokerage trimmed CagriSema’s peak sales forecast to $7.25 billion, far below consensus estimates of over $16 billion. Analysts flagged flexible dosing as a potential barrier, questioning the real-world demand for next-gen obesity treatments.
“We see a potentially challenging catalyst path ahead for Novo, with bulls likely focusing on a possible inflection in GLP-1 supply, injectable amycretin initial data for Phase III "go", and then high risk Alzheimer's results by YE,” wrote Jefferies analyst Peter Welford.
In contrast, BofA is optimistic. Despite shares tumbling 40% in the second half of 2024, they view Novo’s valuation as attractive, highlighting a robust 13% sales CAGR. While conceding that CagriSema’s weight-loss efficacy aligns with Lilly’s Zepbound, they see potential in Amycretin’s differentiation. Early trials for oral Amycretin demonstrated notable weight loss, and strong upcoming data could accelerate its path to Phase III.
BofA has price target of 1,075 DKK on the stock.
Both agree Novo’s focus must shift toward execution, particularly in meeting Ozempic and Wegovy supply targets. Upcoming catalysts, including CMS negotiations on Feb. 1 and further Amycretin data in 2025, could shape investor confidence and the competitive landscape.