JPM downgrades Novo on disappointing CagriSema obesity trial results, shares dip

robot
Abstract generation in progress

JPM downgrades Novo on disappointing CagriSema obesity trial results, shares dip

Vahid Karaahmetovic

Tue, February 24, 2026 at 7:19 PM GMT+9 2 min read

In this article:

  •                                       StockStory Top Pick 
    

    LLY

    +4.86%

 JPM  

 -4.22%  

 

 

 NVO  

 -16.43%  

Investing.com – JPMorgan downgraded Novo Nordisk (CSE:NOVOb) (NYSE:NVO) to Neutral from Overweight after disappointing late-stage REDEFINE-4 results for its obesity drug CagriSema showed weaker-than-expected competitiveness versus Eli Lilly’s (NYSE:LLY) Zepbound.

The Wall Street firm also lowered its price target on the stock to 250 Danish crowns from 350.

Shares in Novo fell around 2.6% in Copenhagen trading.

JPMorgan analyst Richard Vosser said the latest data showed an inferior weight-loss profile versus Lilly’s Zepbound in obesity and a more limited glucose effect in Type 2 diabetes, prompting a reassessment of forecasts.

Vosser noted he had already assumed a limited share for CagriSema following earlier trials, but now expects “a more challenging uptake for the product given inferiority to Zepbound.”

As a result, JPM cut its CagriSema forecasts by 40%–63% for 2027-2030 and trimmed amycretin projections by 1%–23% to reflect lower expected pricing. The changes drove reductions of 2%–16% in group sales forecasts for 2026-2030 and 2%–17% cuts to adjusted EPS.

The analysts now see Novo’s 2026-2030 estimates sitting 5% to 21% below Bloomberg consensus, with expected EPS growth broadly in line with large-cap European pharma peers.

Vosser said the CagriSema profile “seems hard to recover from inferiority result in REDEFINE 4,” even though weight loss of about 20% remains ahead of Wegovy but below Zepbound’s 23%.

The analyst still sees promise in amycretin, particularly as an oral therapy, but cautioned that investor confidence will likely depend on Phase III data expected in 2028–2029.

In a separate note, Barclays struck a more constructive near-term tone on Novo’s Oral Wegovy uptake. The bank said early prescription trends are “encouraging,” with Week 7 scripts reaching about 48,000, up 12% week over week, and daily TRx showing “a strong ramp continues.”

Related articles

JPM downgrades Novo on disappointing CagriSema obesity trial results, shares dip

As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’

This sector is ‘poised for a big, beautiful year’: Truist

Terms and Privacy Policy

Privacy Dashboard

More Info

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments