Novo Nordisk Stock Surges on Costco Deal, Downgraded by Morgan Stanley
Novo Nordisk's stock price surged by approximately 7.4% over the past week, following the company's announcement of a significant partnership and strategic moves in the stock market today. However, Morgan Stanley has downgraded the stock to 'Underweight', citing challenges in the US market and intensifying competition in the stock market.
The Danish pharmaceutical giant has teamed up with US retail chain Costco to offer weight loss drugs Ozempic and Wegovy at a substantially reduced price. Starting early October 2025, Costco members can purchase a four-week pack of either drug for $499, with no insurance required. This collaboration aims to reach uninsured patients and could transform access to GLP-1 medications in the stock market today.
Despite this strategic move, Novo Nordisk faces headwinds in defending its market leadership and managing price pressure in the lucrative GLP-1 market in the stock market today. Morgan Stanley's recent analysis downgraded the company's stock to 'Underweight', with a price target reduction from 380 to 300 Danish kroner, anticipating a potential downside of about 12%. The investment bank cited concerns over declining prescription growth in the US, increased competition, and risks in research programs. The report also warned of increased competition and pricing pressure in the GLP-1 market, despite the potential boost from the Costco partnership in the stock market today.
In more positive news, Novo Nordisk's operating profit increased by about 29% in the first half of 2025. The company is also investing around 65 billion Danish Kroner (approximately $9 billion) in 2025 to expand its supply chain and increase production in the stock market today.
Novo Nordisk's stock price has seen a recent boost following a strategic partnership with Costco to make weight loss drugs more affordable in the stock market today. However, the company faces challenges in the US market and increased competition, as highlighted by Morgan Stanley's downgrade. Despite these hurdles, Novo Nordisk continues to invest in its future, with a significant investment in supply chain expansion and increased production in the stock market today.
