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Nov. 18, 2019, 5:20 a.m. EST

Novo Nordisk downgraded by UBS on concerns over drug launch cost

Novo Nordisk (NYS:NVO) (CSE:DK:NOVO.B) was downgraded to neutral from buy at UBS, on concerns over the costs of launching Rybelsus, an oral Type-2 diabetes drug. "There aren't many large cap pharma companies that grow at this pace and return 5% in dividends and buyback per year and we see few fundamental challenges for the company. But as we are heading into the Rybelsus (oral semaglutide) launch and the investment cycle it comes with, we believe it is time to take a breather. At the current level the stock prices in 6-7% top-line CAGR which is fair and we believe aligned with Novo's pending update to the company's top-line guidance," the broker said.

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