JPMorgan has projected that Novo Nordisk's (NVO, Financial) new weight-loss drug, CagriSema, will have a weight reduction effect of 25.1%, surpassing its competitors Wegovy at 14.9% and Eli Lilly's Zepbound at 20.9%. This positive outlook led to an intraday rise of over 2.9% in Novo Nordisk's U.S. stock on Monday.
JPMorgan added the company's stock to its "positive catalyst watch list" and assigned it an "overweight" rating, expressing confidence in the upcoming December announcement of CagriSema's study data. Analysts, led by Richard Vosser, believe this data could reveal that CagriSema has the best weight-loss efficacy among comparable treatments. They anticipate that if the drug's effectiveness is confirmed, Novo Nordisk's stock could see an additional 10% increase.
The primary focus is on the REDEFINE 1 clinical trial data, which is expected to demonstrate an average weight loss of 25.1% for CagriSema, outshining Wegovy and Zepbound. Furthermore, CagriSema's side effects are anticipated to be on par with these competing treatments.
Additionally, TD Cowen analyst Michael Nedelcovych has issued a "buy" rating, noting that CagriSema's launch preparations are progressing smoothly, with ongoing improvements in its main active ingredient, semaglutide.
