Novo Nordisk Shares Slump As Wegovy Hits US Supply Issues; Deutsche Bank Downgrades

Novo Nordisk A/S NVO said that a contract manufacturer filling syringes for pens to inject Wegovy (semaglutide) had temporarily halted deliveries and manufacturing after issues relating to good manufacturing practices. Consequently, fewer new patients will start treatment with Wegovy in 1H 2022. 

• Novo now expects to meet U.S. demand in 2H of 2022, having previously estimated it would do so at the beginning of the year.
• The Company said that the supply challenges would not impact the previously communicated financial outlook for 2021. 
• Related Link: European Authorities Recommend Approval Of Wegovy For Obesity
• Analyst Take: Deutsche Bank downgraded Novo Nordisk to Hold from Buy with a DKK 775 price target, describing the supply issues as a "minor bombshell on the market."
•  Analyst Emmanuel Papadakis sees the stock is vulnerable to a "material negative reaction in the short term" with valuation at all-time highs, and given that positioning and sentiment are "universally constructive" for a robust Wegovy re-launch.
• Price Action: NVO shares are down 2.63% at $104.62 during the premarket session on the last check Monday.