MW Analyst says he's thrown in the towel on Novo Nordisk after latest setback

By Steve Goldstein

Analysts are capitulating on Novo Nordisk after the latest setback.

Novo Nordisk's study showing a new drug wasn't as good as a rival's led one sell-side analyst to downgrade the stock for the first time in five years.

Deutsche Bank's Emmanuel Papadakis cut his rating on Novo Nordisk to hold from buy, and cut his price target by 31%, after Novo on Monday said its CagriSema weight-loss drug that's awaiting Food and Drug Administration approval didn't perform as well as one from Eli Lilly, the company's arch rival.

He said, up until now, he could live through a projected near double-digit decline in revenue, given the momentum of the launch of oral Wegovy as well as his belief that the guidance was conservative. But now he says the mid-term prospects have been dealt a blow.

Novo Nordisk shares (DK:NOVO.B) (NVO) slipped 2% in early Copenhagen trade, having dropped 16% on Monday. Its average target price is still about 38% above the current price even with a wave of downgrades.

The smallest proportion of analysts, 37%, rate Novo Nordisk a buy since the end of 2021, according to FactSet.

JPMorgan joined the downgrade party, with analysts led by Richard Vosser cutting their rating to neutral from overweight. They cut their CagriSema sales forecasts by as much as 63% between 2027 and 2030.

They did highlight one pipeline catalyst outside of obesity - the drug ziltivekimab, where Phase III data is expected in the third quarter on whether the drug reduces cardiovascular event risk in patients with established atherosclerotic cardiovascular disease, chronic kidney disease, and systemic inflammation .

-Steve Goldstein

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February 24, 2026 04:12 ET (09:12 GMT)

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