Novo Nordisk Stock Slumps as Obesity Data Falls Short

Analyst Peter Welford from Jefferies expressed disappointment with the first headline from Novo Nordisk’s Phase III CagriSema obesity data, which showed 20.4% absolute weight loss. The data suggests that patient adherence may indicate tolerability concerns.

Jefferies had anticipated 25%-27% absolute weight loss and expects fast gastrointestinal tolerability to be similar to Wegovy. However, the company’s peak sales projections for CagriSema are significantly lower than the consensus estimate of $20B-plus. As a result, Jefferies forecasts that Novo Nordisk shares will decline by at least 10%-15%.

The firm maintains an Underperform rating on Novo Nordisk and has set a price target of $81.50. The stock is currently trading down 19% in premarket hours, or $19.84, to $83.60.

Source: https://finance.yahoo.com/news/jefferies-sees-novo-dropping-least-122547299.html