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Investing.com - Jefferies has downgraded Novo Nordisk (CSE:NOVOB) (NYSE:NVO) to Underperform from its previous rating, while reducing its price target to DKK290.00 from DKK415.00.
The downgrade comes as Jefferies assumes new coverage on the Danish pharmaceutical company, citing concerns about the approaching 2031/32 patent expiry for semaglutide, the active ingredient in Novo Nordisk’s popular GLP-1 drugs.
Jefferies highlighted that historical precedents suggest further downside risk exists for the stock as the patent expiry approaches, while also noting that the company’s amyretin program remains high risk.
The research firm expressed concerns about increasing challenges in differentiating obesity treatments, along with early indications of a slowing injectable obesity market, which has been a key growth driver for Novo Nordisk.
While acknowledging potential short-term catalysts including success in the EVOKE studies of GLP-1s in Alzheimer’s disease and the upcoming oral Wegovy launch, Jefferies characterized these as "a short-term trade rather than a longer-term investment thesis."
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