Novo Nordisk A/S (NVO · NYSE)

Novo Nordisk shares have fallen 7.6% over three months to $43.24, pressured by a Morgan Stanley downgrade to Sell on projected market share losses to Eli Lilly and the termination of two Phase 3 heart failure trials (HERMES and ATHENA) for ziltivekimab. Earnings declined 20.6% year over year even as revenue grew 2.1% to $329.43B TTM, and the latest quarter showed sequential deceleration with revenue of $78.49B versus $96.82B in the prior quarter. The company still posted a 42.5% operating margin, 59.8% ROE, and $42.40B in quarterly free cash flow, with leverage modest at 0.8x debt/EBITDA. Offsetting negatives, Wegovy won Chinese approval for MASH and showed positive Phase 3 results in pediatric obesity, while the stock beat estimates in three of its last four quarters and trades at a P/E of 10.73 against an analyst target of $46.80.