"On February 23, REDEFINE-4 trial results showed CagriSema produced 23% average body weight loss versus 25.5% for Eli Lilly Zepbound, a sizable blow for Novo's efforts in this space. The most immediate result of this reveal was that JPMorgan downgraded Novo from Overweight to Neutral, slashed CagriSema forecasts by 40-63% for 2027-2030, and cut group sales estimates by 2-16% through 2030."
"Novo announced it will slash list prices for Ozempic, Rybelsus, and Wegovy to $675/month effective January 1, 2027, down from Wegovy's current price of roughly $1,349/month. A Navitus Health Solutions survey found 7 in 10 GLP-1 users say cost influenced their treatment decisions, so the move addresses a real barrier, but it also validates the pricing pressure Novo already flagged."
Novo Nordisk faced significant setbacks following two major announcements. The REDEFINE-4 trial revealed CagriSema produced 23% average body weight loss compared to Eli Lilly's Zepbound at 25.5%, prompting JPMorgan to downgrade the stock from Overweight to Neutral and slash forecasts by 40-63%. Deutsche Bank and Kepler Cheuvreux also lowered ratings. Simultaneously, Novo announced price cuts for Ozempic, Rybelsus, and Wegovy to $675/month starting January 2027, down from Wegovy's current $1,349/month. This pricing action addresses cost barriers identified in surveys showing 7 in 10 GLP-1 users consider cost in treatment decisions, but validates existing pricing pressure reflected in 2026 guidance of -5% to -13% sales growth. Reddit sentiment declined from 56 to 43 as investors debated the implications.
#novo-nordisk-stock-decline #glp-1-drug-competition #clinical-trial-failure #pharmaceutical-pricing #analyst-downgrades
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]