Novo Nordisk faces continued stock pressure as JPMorgan downgraded the pharmaceutical giant to Neutral from Overweight following disappointing late-stage REDEFINE-4 results for its obesity drug CagriSema. The Danish drugmaker now competes against Eli Lilly's Zepbound with an inferior weight-loss profile, prompting Wall Street firms to reassess growth projections.

JPMorgan lowered its price target to 250 Danish crowns from 350 while slashing forecasts for CagriSema by 40%-63% through 2030. Analyst Richard Vosser called the results challenging, noting the drug's 20% weight loss trails Zepbound's 23%. Deutsche Bank and Kepler Cheuvreux joined the downgrades, reflecting broad concern over Novo's competitive position.

The downgrades translate to 2%-17% cuts to adjusted EPS forecasts through 2030, with estimates now sitting 5%-21% below Bloomberg consensus. While Barclays offered a constructive note on Oral Wegovy uptake with encouraging prescription trends reaching 48,000 by week 7, investor confidence hinges on Phase III data for amycretin not expected until 2028-2029.