At one time, the company was Europe’s most valuable company.
Currently, as a Danish pharmaceutical group novo nordisk As it prepares to release its third-quarter results on Wednesday, things look very different.
Jonathan Ra | Null Photo | Getty Images
CNBC’s Charlotte Reid will be in Copenhagen to speak with new CEO Mark Dusdahl, a 30-year veteran of the company who has been in the top job since August.
It hasn’t been an easy road so far for the group, with sales plummeting, margins squeezed, a series of job cuts and continued competition from U.S. rivals announced for the blockbuster obesity drug market.
Analyst’s view
Despite this, Berenberg is positive on the stock, saying Novo has reached “peak uncertainty.”
“Novo’s superior growth profile and best-in-class R&D revenues result in a strong valuation premium over its peers,” the bank added.
Other analysts are less forgiving.
Jefferies recently downgraded the stock to underperform, citing competitive pressure in the U.S. and price concerns. Meanwhile, UBS analysts said they were concerned that one-off charges of 8 billion Danish kroner ($1.23 billion) related to Novo’s restructuring were not fully reflected in earnings, while adding that investors continued to question the group’s lack of consumer experience in the U.S. market.
On October 17, US President Donald Trump told a news conference that the price of Novo’s hit weight loss drug Ozempic will be “significantly reduced” as part of the government’s pricing negotiations with the company.
Stocks have been under pressure since the beginning of the year.
A tough year for Novo Nordisk stock
boardroom meltdown
This week’s earnings release:
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
