MS cuts Novo Nordisk on growth prospects, patent expiry risks
BUZZ-MS cuts Novo Nordisk on growth prospects, patent expiry risks ** Morgan Stanley downgrades Danish drugmaker Novo Nordisk NOVOb.CO to "underweight" from "equal weight", citing subdued medium-term growth prospects and a significant loss-of-exclusivity risk for semaglutide in the early 2030s
** The broker notes the stock trades at a demanding premium that fails to reflect a looming patent cliff for its diabetes and weight loss drug semaglutide
** Morgan Stanley also points to recent U.S. prescription trends and proprietary survey data indicating Novo is losing market share in diabetes and obesity to Eli Lilly's LLY.N treatments
** The brokerage adds that anticipated sales from the upcoming oral obesity franchise will likely not be enough to offset increasing pricing pressures and competition
** Novo Nordisk shares slip 2.4%, sitting among the worst performers on the STOXX 600 .STOXX
** Out of 32 analysts, eight rate Novo "strong buy" or "buy", 21 "hold" and three "strong sell" or "sell" - LSEG data
(Reporting by Agnieszka Gosciak-Rabalska)
((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))
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