Novo Nordisk Hit with Downgrade as Patent Expirations Loom
Novo Nordisk's prospects for growth rebound in 2027 have been questioned by Deutsche Bank, which downgraded the company to 'Sell' from 'Hold' with a price target of DKK 265. This implies a potential downside of 10% from current levels.
The firm cited concerns about Novo's ability to return to growth next year and the impact of longer-term patent expirations, especially for the weight-loss formulation Semaglutide. Fiscal.ai estimates show annual sales slipping from DKK 309 billion in 2025 to DKK 299 billion in 2026 before edging up to DKK 304.25 billion in 2027.
However, a potential bright spot for Novo is the acceptance of its application for the oral version of Wegovy by Chinese regulators. This opens a path into a weight-management market that could reach RMB30 billion (around $4.5 billion) within five to seven years, according to a Reuters report citing JPMorgan.