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Novo Nordisk A/S (NYSE:NVO) shares are trading higher on Tuesday. The company recently lost its bidding war for Metsera Inc (NASDAQ:MTSR).
What Happened: According to Reuters, Pfizer Inc (NYSE:PFE) won the bidding war against Novo Nordisk and will purchase Metsera for $10 billion. The board of Metsera accepted Pfizer’s offer, stating that Novo’s bid carried too much legal and regulatory risks following antitrust concerns raised by the Federal Trade Commission.
Along with news of the company’s bidding war, Novo Nordisk reportedly cut the price of Wegovy in India as the company pushes for market share in one of the fastest-growing markets for obesity treatments in the world. Reuters reported that the drugmaker had instituted cuts of as much as 33% for the blockbuster treatment.
The monthly price for Wegovy’s highest dose of 2.4 mg now costs 16,400 rupees ($186.59), compared with its earlier price of 24,389.06 rupees. The lowest dose of 0.25 mg will be sold at 10,850 rupees for a monthly pack, down from 16,260.94 rupees previously.
The price cut occurs before the Indian patent on Wegovy’s active ingredient, semaglutide, expires in March 2026, allowing generic pharmaceutical companies to enter the market. According to Vishal Manchanda, an analyst at Systematix Institutional Equities, Novo will be able to more effectively compete with Mounjaro and emerging generics thanks to the lower price.
Analyst ratings on Novo Nordisk are seeing a wide range of opinion, going from underperform to buy. Jefferies gave it an underperform rating on Oct. 27, while BMO Capital stuck with market perform on Oct. 14 but bumped its price target from $50 to $55. HSBC was more bullish, upgrading to buy on Oct. 2 with a $70 target.
Meanwhile, Morgan Stanley took a more cautious stance, downgrading the stock to underweight from equal-weight on Sept. 29 and cutting its target from $59 to $47. Earlier that month, Berenberg moved its rating up to buy from hold, signaling a more optimistic view. These mixed calls reflect the uncertainty around how Novo Nordisk will perform going forward.
NVO Price Action: Novo Nordisk shares were up 7.25% at $49.27 at the time of publication on Tuesday, according to Benzinga Pro.
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