Incannex Healthcare Halted, News Pending
Investing.com - BMO Capital has lowered its price target on Novo Nordisk (NYSE:NVO) to $55.00 from $64.00 while maintaining a Market Perform rating. The pharmaceutical giant, which boasts an impressive 84.65% gross profit margin and has maintained dividend payments for 37 consecutive years, has seen its stock decline 36.54% year-to-date. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value model.
The firm cited shifting dynamics in the incretin drug market, noting that Novo Nordisk’s positioning has become unsteady as commercial realities begin to reflect clinical evidence.
BMO Capital believes that tirzepatide, marketed as Mounjaro and Zepbound by Eli Lilly (NYSE:LLY), is demonstrating superiority to Novo Nordisk’s semaglutide products.
The firm identified compounding as a significant headwind for Novo Nordisk, while also noting that tirzepatide’s strong clinical profile has left Novo Nordisk in a position where it needs to catch up to its competitor.
As a result of these factors, BMO Capital has reduced its target price for Novo Nordisk’s US ADR shares and increased its long-term market share allocation to Eli Lilly at Novo Nordisk’s expense.
In other recent news, Novo Nordisk has announced a reduction in its guidance alongside the resignation of its CEO, a development described as a "double surprise" by BMO Capital Markets analyst Evan David Seigerman. Despite these challenges, Deutsche Bank (ETR:DBKGn) has reiterated its Buy rating on Novo Nordisk, maintaining a positive outlook ahead of the company’s upcoming second-quarter earnings report. In a significant investment move, Denmark’s EIFO and the Novo Nordisk Foundation have partnered with Microsoft (NASDAQ:MSFT) and Atom Computing to acquire the world’s most powerful quantum computer, named Magne, which is slated to be operational by early 2027.
Additionally, Hims & Hers CEO Andrew Dudum disclosed details about the termination of their partnership with Novo Nordisk, which ended in June 2025. The partnership reportedly deteriorated following discussions about Hims’ plans to offer personalized doses of semaglutide. Novo Nordisk has also submitted an application to the European Medicines Agency for a higher dose of its obesity treatment Wegovy, based on clinical trials STEP UP and STEP UP T2D. These trials evaluated the drug in adults with obesity and those with both obesity and type 2 diabetes.
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