Novo Nordisk was downgraded to sell by Deutsche Bank.

While Ozempic maker Novo Nordisk has fallen on tough times, Wall Street analysts have still been reluctant to advise investors to sell the stock, until Deutsche Bank lowered the boom on Thursday.

Analyst Emmanuel Papadakis cut his rating to sell from hold and cut the price target by 9%, to 265 kroner.

Novo shares (DK:NOVO.B) (NVO) fell 2% to 299 kroner in early trade.

While the company's stock has dropped some 70% from its June 2024 peak, 62% of analysts still are advising investors to hold the stock, according to FactSet, though by Wall Street standards that's still pessimistic. There are three other analysts with an underweight or sell rating, according to FactSet, while 26% of analysts rate the stock a buy.

Papadakis said that while there is "information uncertainty" ahead of a Sept. 21 capital markets day, the anti-inflammatory drug ziltivekimab is now "effectively out of the picture" following the release of a late-stage trial that missed its primary endpoint.

That's in addition to other problems: an anticipated "bump" in weight-loss drug sales, from Medicare covering its Wegovy weight-loss drug for cardiovascular patients, is "looking limited."

Moreover, there are persisting concerns on the scope for a return to growth in 2027 and a large patent cliff problem further out, the analyst said.

-Steve Goldstein