News
is Novo Nordisk past its ‘peak uncertainty’?
At one point, it was Europe’s most valuable company.
Now, as Danish pharmaceutical group Novo Nordisk prepares to publish its third-quarter earnings on Wednesday, the picture looks very different.
Jonathan Raa | Nurphoto | Getty Images
CNBC’s Charlotte Reed will travel to Copenhagen to speak with the company’s new CEO Mark Doustdar, a 30-year veteran of the company, who has been in the top job since August.
It’s not been an easy ride so far, with the group announcing a sharp decline in sales, pressure on profit, a round of jobs cuts and continued competition from U.S. rivals when it comes to the blockbuster obesity drug market.
Analysts’ views
Despite this, Berenberg is positive on the stock, saying Novo has hit “peak uncertainty.”
“Novo’s superior growth profile and best-in-class R&D returns warrants a higher valuation premium to its peers,” the bank added.
Other analysts are less forgiving.
Jefferies recently cut the stock’s rating to underperform, citing competitive pressure in the U.S. and pricing concerns. Meanwhile, UBS analysts are concerned Novo’s 8 billion Danish krone ($1.23 billion) one-off cost related to its restructuring has not been fully reflected on the bottom line, while adding that investors are continuing to question the group’s lack of consumer experience in the American market.
On Oct. 17, U.S. President Donald Trump told a press conference that the price of Novo’s blockbuster weight-loss drug Ozempic would be “much lower” as part of the administration’s negotiations over pricing with the company.
The share price has been under pressure since the start of the year.
Tough year for Novo Nordisk shares
Boardroom meltdown
Earnings releases this week:
Monday: Ryanair, Berkshire Hathaway
Tuesday: BP, Philips, Ferrari, Uber, Pfizer
Wednesday: Novo Nordisk, BMW, Orsted, ARM, McDonald’s
Thursday: Astrazeneca, Commerzbank, Diageo, ArcelorMittal, AirBnB
Friday: Daimler
