JPM expects Novo to carry pharma sector in 2024
05/12/2023 08:48
** J.P.Morgan says big pharma companies such as Novo Nordisk
NOVOb.CO and AstraZeneca AZN.L will help the sector
outperform the wider market in 2024
** The brokerage points to Novo in particular, which it says
"has the most and biggest catalysts", including Phase III data
in NASH (nonalcoholic steatohepatitis) for its weight loss drug
Wegovy
** JPM also expects a better performance from AstraZeneca in
2024, and a recovery from Merck & Co MRK.N and Sartorius
Biotech STDM.PA , pointing to their higher growth, and new
launches which will drive upgrades
** The brokerage says it avoids companies such as Bayer
BAYGn.DE and Roche Holding ROG.S , citing downside to
consensus expectations next year
** It cuts Sanofi SASY.PA to "neutral" from "overweight",
saying consensus already reflects its 2024 drug launches, with
limited chance for shares re-rating in the next 12-18 months
** It downgrades Belgium's UCB UCB.BR to "underweight"
from "neutral", saying its pipeline is either high risk, or of
more limited commercial potential
** It cuts Euroapi EAPI.PA to "neutral" from "overweight",
as it expects it to post flat revenues next year with core
EBITDA margin also flat at 10%
** Separately, Berenberg hikes its PT on Novo by 6.6% to DKK
650 citing 2023 guidance hike and strong prescription trends,
but keeps its "hold" rating on rising competition in the obesity
market
(Reporting by Olivier Sorgho, additional reporting by Jesus
Calero)
((Olivier.Sorgho@thomsonreuters.com))