Novo Roundtrips GLP-1 Craze Ahead Of Earnings As Goldman Maps Out Next Wave Of Obesity-Drug Catalysts

The rollercoaster ride of the GLP-1 craze and bust cycle for Novo Nordisk A/S shares has been wild to observe over the last several years. The stock has since returned to roughly pre-GLP-1-boom levels, down 50% year-to-date amid intensifying obesity-drug competition and a series of profit downgrades.

New Novo CEO Maziar Mike Doustdar will deliver his first set of results as the new head of the Danish pharma company on Wednesday with the reporting of third-quarter earnings. 

Already, Novo has slashed 9,000 jobs globally and cut its profit forecast for the third time this year. 

“Since the new CEO took the helm, early signs indicate a more aggressive approach,” Berenberg analyst Kerry Holford recently told clients, adding that the board reshuffle creates more unexpected disruption, “change at Novo is necessary and may ultimately be a net positive.”

Paul Major, a portfolio manager at Bellevue Asset Management, told Bloomberg, “The shares have been under pressure all year. It will be interesting to hear what he’s got to say, what he thinks the priorities are, because that’s going to tell us why the board thought he was the right person for the job.”

All Doustdar needs now is to present a solid turnaround plan to convince investors that he’s plugged the holes and stopped the ship from sinking any further.

Despite the steep selloff, Wall Street remains broadly optimistic, with about 56% of analysts rating the stock a “Buy,” 12% “Neutral,” and just 6% “Sell.” The average 12-month price target implies 37% upside from current levels.

Besides Novo, there’s a lot more happening in the obesity space. Goldman Sachs analysts, led by Corinne Johnson, provided clients with a comprehensive breakdown of the upcoming stock-moving developments across Eli Lilly, Novo Nordisk, and other players in the sector.

Professional subscribers can find the full note at our new Marketdesk.ai portal.