Novo Nordisk Stock Slumps Amid Analyst Downgrade and Pricing Pressures

Novo Nordisk shares dipped 0.2% on Monday as Thibault Boutherin of a prominent investment bank downgraded the stock to 'underweight' from 'equal weight.' The analyst slashed his price target for the Europe-listed shares to 300 Danish kroner ($47.02) from 380 kroner ($59.56), citing multiple headwinds.

Key concerns include dimming prospects for semaglutide's application in Alzheimer's treatment and potential Medicare pricing cuts for diabetes drug Ozempic. The downgrade reflects broader pressures in the pharmaceutical sector, where regulatory risks and competitive landscapes are reshaping valuations.

While the S&P 500 edged up 0.3%, Novo Nordisk's muted decline suggests markets had partially priced in these challenges. The company now faces a critical juncture in maintaining its blockbuster drug momentum amid tightening reimbursement policies.