Argus Downgrades Novo Nordisk A/S (NVO) to Hold From Buy

Novo Nordisk A/S (NYSE:NVO) is one of the best pharma stocks to invest in. Argus analyst Jasper Hellweg downgraded Novo Nordisk A/S (NYSE:NVO) to Hold from Buy on December 8, without assigning a price target. The analyst told investors in a research note that the company is experiencing a drop in marketshare in its GLP-1 drug category, including Ozempic and Wegovy.

It is also agreeing to bring the prices of these drugs down in the United States markets, and is expected to soon see the emergence of generic versions of these products in some international markets. At the same time, some key clinical trials by Novo Nordisk A/S (NYSE:NVO) have “failed to impress”, according to the analyst, adding that the recent semaglutide trials do not confirm superiority compared to placebo in the reduction of progression in Alzheimer’s disease.

Separately, Novo Nordisk A/S (NYSE:NVO) submitted an sNDA to the FDA for a higher dose of semaglutide injection 7.2 mg for use in conjunction with higher physical activity and a reduced-calorie diet for chronic weight management in adults with obesity. Management stated that the review is anticipated within 1-2 months under the CNPV expedited program after the FDA accepts the filing. If approved, the investigational semaglutide 7.2 mg injection would provide the option of a higher dose for increased weight loss potential in adults with obesity.

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.

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Disclosure: None. This article is originally published at Insider Monkey.