Figma Shares Indicated To Open $105/$110
On Wednesday, BMO Capital Markets reiterated its Market Perform rating on Novo Nordisk (NYSE:NVO) shares, maintaining a price target of $64.00. According to InvestingPro data, Novo Nordisk, with its substantial $298.7 billion market capitalization, stands as a prominent player in the Pharmaceuticals industry, demonstrating robust financial health with an impressive 84.65% gross profit margin. The firm’s analyst, Evan Seigerman, commented on Novo Nordisk’s recent collaboration agreement with Septerna to develop multiple oral small molecule drug candidates targeting G-protein coupled receptors. With revenue growth of 24.11% in the last twelve months and a strong track record of dividend payments for 37 consecutive years, Novo Nordisk continues to demonstrate its commitment to both growth and shareholder returns. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report. Seigerman views the collaboration positively, noting it aims to broaden Novo Nordisk’s portfolio with a variety of oral small molecule agents.
The collaboration is focused on expanding Novo Nordisk’s incretin oral approach, which Seigerman believes is a strategic move for the company. However, he also pointed out that Septerna’s products are still in the preclinical and early development stages. This means that the products are not yet close to entering the market and will not affect Novo Nordisk’s near-term competitive position.
Seigerman compared the deal with current developments by competitors, mentioning that Lilly’s orforglipron and Structure’s aleniglipron are further along in the development process, with one in Phase 3 and the other in Phase 2 trials. Despite the competitive landscape, Novo Nordisk maintains strong market positioning, reflected in its robust return on equity of 88% and moderate debt levels, as revealed by InvestingPro metrics. These competitors’ more advanced stages suggest that Novo Nordisk’s deal with Septerna will not disrupt the immediate competition.
The deal terms, which include $200 million in upfront payments, reflect the early-stage risk associated with Septerna’s preclinical products. BMO Capital’s reiteration of the Market Perform rating indicates a neutral outlook on Novo Nordisk’s stock, suggesting that the analyst sees the company’s current stock valuation as fair given the existing business conditions and market competition.
In other recent news, Septerna, Inc. announced an exclusive global collaboration and license agreement with Novo Nordisk to develop oral small molecule medicines targeting obesity and cardiometabolic diseases. This partnership could bring Septerna up to $2.2 billion, including over $200 million in upfront and near-term milestone payments, along with tiered royalties on global net sales. Novo Nordisk has also filed for U.S. approval of an oral version of its weight loss drug Wegovy, which follows positive Phase 3 trial data showing significant weight loss in patients. Meanwhile, BofA Securities adjusted its price target for Novo Nordisk shares to DKK850 while maintaining a Buy rating, citing strategic initiatives expected to drive growth in the latter half of the year.
Additionally, Novo Nordisk anticipates the FDA will enforce a ban on compounded copies of Wegovy and Ozempic, aiming to halt unauthorized production and distribution. CVS Caremark has partnered with Novo Nordisk to make Wegovy the preferred weight-loss drug for its members starting July 1, 2025, as part of a broader weight management program. This strategic move is seen as a way for Novo Nordisk to regain market share amid competition. Furthermore, the company is in the early stages of the Ozempic IRA process, with ongoing regulatory processes for other products like Amycretin, where an FDA decision is expected soon. These developments highlight Novo Nordisk’s active role in expanding its product offerings and strategic market positioning.
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