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On Wednesday, BofA Securities revised its price target for Novo Nordisk (CSE:NOVOb) (NOVOB:DC) (NYSE: NYSE:NVO) shares, lowering it to DKK850 from the previous DKK910. Despite the reduction, the firm maintained a Buy rating on the stock. The pharmaceutical giant, currently valued at $302.4 billion, has demonstrated robust financial performance with a 25% revenue growth over the last twelve months. According to InvestingPro analysis, the company maintains a GREAT financial health score, supported by strong profitability metrics and consistent dividend payments for 37 consecutive years. BofA Securities analyst Sachin Jain cited several reasons for the adjustment following a recent earnings call with the company.
During the call, Novo Nordisk expressed confidence in a second-half-year inflection, driven by three main initiatives. These include a broader commercial strategy with a new cash offering called NovoCare, partnerships involving telehealth and contracting with CVS, and an expansion of coverage. Additionally, the company plans to implement a targeted SG&A commercial strategy.
The guidance provided by Novo Nordisk assumes that a reduction in compounded semaglutide in the second half of the year will benefit both Wegovy and Ozempic, two of its leading products. However, Jain noted that the company offered limited details regarding the mechanics of these assumptions, including the impact of inventory levels, brand switching, and capture rates.
In response to inquiries about competition from cheaper alternatives and the efficacy of Novo Nordisk’s products in different channels, the company highlighted the availability of Wegovy in new channels. For Ozempic, which has seen a slowdown in market growth and a loss in market share, Novo Nordisk plans to focus on commercial efforts to decrease outflow, encourage longer treatment durations, and transition patients to a higher 2mg dose.
Furthermore, Novo Nordisk is currently in the early stages of the Ozempic IRA process, with the company viewing the associated risks as relatively limited due to its pricing position. The company’s strong financial foundation, with a moderate debt level and ample cash flow coverage for interest payments, positions it well for future developments. Finally, the regulatory process for Amycretin is ongoing, with an FDA decision expected in the coming months. The company anticipates starting Phase III trials for both oral and subcutaneous Amycretin in the first quarter of 2026. Discover more exclusive insights and access the complete Pro Research Report for Novo Nordisk through InvestingPro, featuring detailed analysis of the company’s growth trajectory and market position.
In other recent news, Novo Nordisk has announced its anticipation of the U.S. Food and Drug Administration enforcing a ban on compounded copies of its drugs Wegovy and Ozempic starting May 22. This move aims to halt unauthorized production and distribution of these key products. Additionally, Novo Nordisk has filed for U.S. approval of an oral version of its weight loss drug Wegovy, following positive Phase 3 trial data. This oral form could offer an alternative to injectable treatments amid growing competition in the obesity treatment market.
In partnership developments, CVS Caremark has named Wegovy its preferred weight-loss drug, effective July 1, 2025, as part of a strategy to expand access at a more affordable price. Analysts from BMO Capital have downgraded Novo Nordisk’s stock from ’Outperform’ to ’Market Perform,’ citing competitive pressures from Eli Lilly (NYSE:LLY) and concerns over Novo Nordisk’s market position. BMO Capital also reduced the company’s price target significantly from $105.00 to $64.00.
Meanwhile, the FDA has been alerted to counterfeit Ozempic units in the U.S. drug supply chain, leading to a warning for inspection of specific lot numbers. The FDA and Novo Nordisk are currently testing the seized counterfeit products to assess their quality and safety. These recent developments highlight ongoing efforts by Novo Nordisk to navigate regulatory, competitive, and safety challenges in the pharmaceutical industry.
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