Novo Nordisk Stock Plunges on Morgan Stanley Downgrade Warns of Semaglutide Patent Cliff

Novo Nordisk's stock dropped over 2% after Morgan Stanley downgraded its rating due to long-term risks associated with its drug semaglutide. The brokerage expects semaglutide to comprise about 75% of Novo's sales by 2026, making the company vulnerable to loss of exclusivity starting in 2031 and potential generic competition. Morgan Stanley also noted weaker momentum in U.S. prescriptions for Wegovy and increased competition from Eli Lilly's Zepbound.