Novo Nordisk's stock price fell as HSBC downgraded its rating, saying that its catalysts are limited.

HSBC has downgraded the stock rating of Danish pharmaceutical company Novo Nordisk from "buy" to "hold", and acknowledged that their previous assessment of the company was "wrong". As a result, Novo Nordisk's stock price fell by as much as 2.5%, potentially marking the worst single-week performance in history. Prior to this rating downgrade, Novo Nordisk had already lowered its sales and profit expectations for the year on Tuesday, and appointed an internal candidate as the new CEO. Analyst Rajesh Kumar wrote in a report, "We had assumed that with the FDA banning compounded drugs, Novo Nordisk may regain market share, but this assumption did not materialize." HSBC stated, "Slowing growth, execution issues, and management changes have limited the possibility of re-rating the stock in the short term." The target price has been significantly reduced from 680 Danish kroner to 360 Danish kroner.