Citi flags GLP-1 prescription slowdown at Novo Nordisk, reiterates 'sell'
Citi reiterated its 'sell' rating on Novo Nordisk (NYSE:NVO) with a price target of 265 DKK, down from 292.4 DKK. The bank's IQVIA tracker showed declining prescriptions for Novo's GLP-1 obesity drugs, except oral Wegovy. Ozempic and subcutaneous Wegovy showed positive growth, while Rybelsus fell. Citi expects double-digit upside for Ozempic and subcutaneous Wegovy, but single-digit for Rybelsus.
How this was made
The 30-second read
Why it matters
Analyst downgrade based on fresh prescription trends may trigger sell‑offs and re‑rating by other houses.
Market read
First report of a sell rating tied to slowing GLP‑1 demand, likely to affect Novo Nordisk's share price and sector sentiment.
What to watch
Potential upcoming product launches or pricing adjustments may offset short‑term prescription declines.
Background
Citi's weekly IQVIA tracker provides near‑real‑time retail prescription data for Novo Nordisk's GLP‑1 portfolio.
Ticker impact
Citi reiterated a sell rating on Novo Nordisk, citing a slowdown in GLP‑1 prescriptions and projecting further downside.
Downside pressure of ~5‑10% over the next weeks.
Citi's downgrade is based on fresh prescription data showing negative trends across key products, which is new information for the market.
Market effects
Weight loss/obesity drug sector may face broader scrutiny as prescription growth slows.
European and US markets could see modest sell pressure on pharma stocks linked to GLP‑1 therapies.
Novo Nordisk is a global leader; its downgrade may influence investor sentiment worldwide.
Counterpoint
The slowdown could be temporary; new oral Wegovy remains in line with expectations, offering upside potential.
Key entities
- companyNovo Nordisk
Danish pharmaceutical group (NYSE:NVO) focused on GLP‑1 obesity and diabetes drugs.
- analyst_firmCiti
Investment bank providing the downgrade and prescription trend analysis.
