Core Viewpoint - Morgan Stanley analysts have downgraded Novo Nordisk's stock due to concerns about declining demand for its weight-loss drugs Ozempic and Wegovy, as well as doubts regarding the effectiveness of its Alzheimer's treatment [1][2][3]. Group 1: Stock Downgrade and Price Target - Morgan Stanley downgraded Novo Nordisk's rating from "equal weight" to "underweight" and reduced the price target from $59 to $47 [2][7]. - U.S.-listed shares of Novo Nordisk have decreased by a third this year, with recent trading showing a decline of less than 1% to below $55 [2][5]. Group 2: Demand and Market Concerns - Analysts noted that prescriptions for Ozempic and Wegovy have stagnated in the U.S., forecasting a decline in the U.S. GLP-1 diabetes franchise in 2026 due to market share and price pressures [4]. - The first generic competition for Ozempic outside the U.S. is expected to impact growth, particularly in Canada and emerging markets [4]. Group 3: Alzheimer's Treatment and Competitive Landscape - There are concerns that upcoming trial results for Novo Nordisk's GLP-1 treatments for Alzheimer's disease may not show statistically significant outcomes [4][5]. - Potential price cuts for Ozempic and Wegovy in Medicare Part D plans pose additional downside risks, along with doubts about the performance of Novo Nordisk's experimental obesity/diabetes combination drug CagriSemi compared to Eli Lilly's Zepbound [5].