Novo Nordisk met Q2 expectations with strong revenue growth, but faces challenges post-2032 patent expiration

From Morningstar: 2024-08-08 04:33:00

Novo Nordisk’s second-quarter results met expectations, maintaining a DKK600/USD86 fair value estimate. Revenue grew 25% at constant currencies, with management raising their 2024 sales growth expectations. However, shares are deemed overvalued due to potential challenges in growth post-2032 patent expiration for key products like Ozempic and Wegovy.

The pharmaceutical giant faces pressure in its drug pipeline, particularly in the obesity market. Price declines may accelerate, with competition from new challengers eroding market share. Novo’s reliance on peptide manufacturing poses challenges, especially if launching an oral version of semaglutide. Competitors with oral small molecule programs may have an advantage in scalability.



Read more at Morningstar: Novo Nordisk Earnings: Wegovy Supply & Obesity…