Berenberg Downgrades Novo Nordisk A/S Amid Eli Lilly Competition

Berenberg Bank downgraded the stock rating of Novo Nordisk A/S from Buy to Hold on Wednesday, lowering the price target from $50.00 to $47.00. The investment firm previously maintained a Buy rating based on the launch of the Wegovy oral pill in the first half of 2026, but now anticipates intensifying competition in the oral obesity medication market during the second half of the year.

Berenberg specifically cited the imminent Food and Drug Administration approval of Eli Lilly and Company's Foundayo diabetes pill and expects Eli Lilly to dominate the Medicare access channel. The firm stated that further valuation expansion for Novo Nordisk A/S will require evidence that the company can maintain its lead in oral obesity drugs and grow its injectable market share.

The downgrade comes despite strong second-quarter 2026 financial results from Novo Nordisk A/S. The company reported revenue of $12.1 billion and adjusted earnings of $0.9527 per share, both of which exceeded Wall Street expectations. This growth was primarily driven by the launch of the Wegovy pill and continued demand for GLP-1 medicines.