DNB ups Novo Nordisk on 'game changing' Catalent acquisition

Catalent

04/03/2024 12:06

** DNB Markets upgrades Novo Nordisk  NOVOb.CO  to "buy"
from "hold" saying that the acquisition of Catalent  CTLT.N , a
key manufacturing subcontractor, is a "game changer" allowing
"demand-driven" Wegovy sales from 2026
    ** The supply bottleneck for Wegovy lies in the filling
chain, DNB says, seeing the acquisition of the three Catalent
fill-finish manufacturing sites as likely to solve the supply
issues for Wegovy as well as support further rollouts
    ** "With the acquisition, the obesity opportunity moves from
supply to demand-driven, while at the same time making scale a
significant competitive advantage," the broker says
    ** DNB sees volumes of Wegovy ramp up significantly after
2026 and expects a fast rollout and uptake without the supply
constraint
    ** DNB expects the obesity market to remain close to
duopolistic with Eli Lilly  LLY.N  long-term as "scale and scale
benefits are near impossible to recreate for a new entrant"
    ** It models Wegovy peak sales of DKK 233,025 million
($33.92 billion) in 2031 and hikes its PT by 25% to DKK 1,000
    ** Shares in Novo are up 3.4% to a fresh record high
    



($1 = 6.8702 Danish crowns)

 (Reporting by Elsa Ohlen)
 ((elsa.ohlen@thomsonreuters.com;))