Report: Novo Nordisk shows highlights under price pressure

Glonghui, May 18th | Soren Lontoft Hansen of Sydbank wrote that Novo Nordisk’s report had some highlights, with the development of its obesity business being a major positive factor. Hansen added that overall, however, the first-quarter earnings were characterized by pricing pressure faced by the commercial division, just as the most-favored-nation pricing agreement reached with the U.S. President Trump administration led to price declines in the U.S. cash pay division. Despite the impact of pricing, Sydbank stated that the Danish pharmaceutical company is showing initial signs of being able to offset the effects of lower prices by increasing sales growth. “Although uncertainty is currently very high, in our view, the stock price still reflects some very bleak earnings scenarios,” Hansen said. “We believe these earnings scenarios are excessively bleak relative to the opportunities available.” The stock price fell by 3.9%.