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Morgan Stanley expects Novo Nordisk Alzheimer trial to fail as it slashes rating

1. Morgan Stanley predicts trial failure for Novo's weight-loss drug against Alzheimer's. 2. Price target lowered to $47 from $59, the most pessimistic on Wall Street. 3. Semaglutide has a 75% chance of failing to reduce dementia statistically. 4. Ozempic prescriptions are declining, while Lilly's Mounjaro prescriptions grow. 5. Medicare Part D may cut semaglutide prices by 50%.

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FAQ

Why Very Bearish?

Morgan Stanley's downgrade and negative predictions suggest significant potential declines. Historical trends show that similar downgrades often precede sharp price drops.

How important is it?

Analyst predictions, especially downgrades, significantly sway investor sentiment and stock pricing. The imminent trial results heighten this impact.

Why Short Term?

Upcoming trial results and prescription trends will quickly affect NVO's stock price. Market reactions are typically swift to analyst downgrades and trial announcements.

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