Novo Nordisk Stock Rises as UBS Upgrades Ozempic Maker, Calls Sell-Off 'Overdone'

Core Viewpoint - UBS Research upgraded Novo Nordisk's stock to "buy" from "neutral," citing that the recent sell-off was "overdone" [2] Group 1: Stock Performance and Analyst Actions - Novo Nordisk's shares rose after the upgrade, with Copenhagen-listed shares closing up approximately 2.8% and U.S.-listed shares up nearly 2% at $84.94 [6] - UBS lowered the price target for Novo Nordisk's domestic shares to 750 Danish kroner ($103.55) from 1,100 kroner, while the stock closed at 619.50 kroner, about 40% below its record close of 1,028 kroner on June 25, 2024 [2][6] Group 2: Market Outlook and Drug Performance - Analysts view the recent decline in stock price as an "attractive entry point," anticipating growth in the weight-loss drug market in the first quarter of the year [3] - Novo Nordisk is a leader in the weight-loss drug market with its products Ozempic and Wegovy, competing with Eli Lilly's Mounjaro and Zepbound [3] Group 3: Sales Projections and Patent Expiration - UBS analysts projected "risk adjusted peak sales" of $75 billion annually through 2031, down from a previous estimate of$80 billion, due to upcoming patent expirations in Europe (2031) and the U.S. (2032) [5] - The lowered sales projection is also influenced by disappointing trial results for Novo Nordisk's newest weight-loss drug, although it is still expected to be more effective than Ozempic [4][5]