DNB Carnegie cuts its price target for Novo Nordisk to 400 Danish kroner (420), reiterates buy

Novo Nordisk shares dropped 7.7% after the company's 2030 growth plans disappointed investors. The drugmaker promised new drugs but only average revenue growth compared to peers. Analysts cited lack of ambitious growth as the reason for the sell-off.

Novo Nordisk shares fell as much as 9% during its Capital Markets Day after presenting long-term growth targets. The company aims for revenue growth in line with peers, launching five multi-blockbuster drugs by 2030, and serving 60 million patients. Investors sought clearer answers on semaglutide replacement and pricing power. Management also revealed higher-than-planned employee reductions. Positive clinical trial results were overshadowed by investor concerns.

Novo Nordisk shares fell up to 9% as executives addressed concerns about pricing power and patent expirations for semaglutide, the active ingredient in Wegovy and Ozempic. The company aims to launch five blockbuster drugs by 2030 and achieve 150 billion kroner in pipeline sales by 2035. Analysts questioned the sustainability of premium pricing and the company's growth targets, which were deemed underwhelming. Novo shares partially recovered, closing down 4.4%.

Novo (NVO) stock fell 4% after announcing a growth strategy targeting over 5 new drugs by 2030, aiming for $23B in sales by 2035. The company seeks to address patent expiration concerns for its key drugs, Ozempic and Wegovy, and compete with rivals like Eli Lilly (LLY). NVO shares have dropped 28% in the past year, trading at $43.24.

Novo Nordisk's shares fell 5.4% in Copenhagen and 8.08% on Nasdaq after presenting long-term targets. The company aims for over five new medicines by 2030 and 150 billion DKK in sales by 2035, but investors were underwhelmed by growth projections. Key patent protections for semaglutide expire in 2032, and competition from Eli Lilly is intense. Analysts note the outlook is cautious, with potential near-term pressure.

Novo Nordisk's CagriSema showed greater weight loss than Eli Lilly's tirzepatide in type 2 diabetes patients (12.4% vs. 9.1%) and 21% weight loss in overweight/obese adults without diabetes. Both trials met primary endpoints. CagriSema is under FDA review for weight management.