BUZZ-TD Cowen stays 'buy' on Novo Nordisk despite CagriSema trial results

Reuters12-23 16:36
BUZZ-TD Cowen stays 'buy' on Novo Nordisk despite CagriSema trial results

Dec 23 - ** TD Cowen maintains a "buy" rating on Novo Nordisk NOVOb.CO due to good market position owing to key drugs, new CagriSema trial potential, and a "vibrant pipeline", despite CagriSema's results trial below expectations

** The broker says the new trial could show better weight loss outcomes if more patients reach the top dose

** TD Cowen also sees potential for CagriSema to outperform in glycemic control for type 2 diabetic patients

** A head-to-head trial against Eli Lilly's LLY.N tirzepatide may also determine CagriSema's relative success, the broker says

** TD Cowen notes Novo's pipeline which could ensure its long-term growth, specifically the development of amycretin, a GLP-1/GIP dual agonist, and a potential tri-agonist targeting different biological receptors

** However, the broker cuts the target price by c.32% to $105, based on CagriSema trial results below expectations, as it updates projected sales for CagriSema Obesity of DKK 18 billion in 2030 (vs. prior DKK 24B) but leaving CagriSema Diabetes estimates unchanged (at DKK 15B in 2030)

** Novo Nordisk NOVOb.CO shares are up 7.9%, after they dropped 20.72% on Friday

** Out of the 26 analysts covering Novo, 17 rate it "strong buy" or "buy", seven rate it "hold", and two rate it "strong sell", according to LSEG data

(Reporting by Vera Dvorakova)

((vera.dvorakova@thomsonreuters.com))

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