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is Novo Nordisk past its ‘peak uncertainty’?

It was once the most valuable company in Europe.

Now as a Danish pharmaceutical group Novo Nordisk As the company prepares to report its third-quarter earnings on Wednesday, the picture looks quite different.

Jonathan Raa | Nurfoto | Getty Images

CNBC’s Charlotte Reed will travel to Copenhagen to speak with the company’s new CEO, Mark Doustdar, a 30-year veteran of the company who has been in the top job since August.

It hasn’t been an easy journey so far, with the group announcing a sharp decline in sales, profit pressures, a series of redundancies and continued competition from US rivals when it comes to the blockbuster obesity drug market.

Analysts’ opinions

Despite this, Berenberg remains bullish on the stock, saying Novo has reached the “peak of uncertainty.”

“Novo’s superior growth profile and best-in-class R&D returns warrant a higher valuation premium over its peers,” the bank added.

Other analysts are less forgiving.

Jefferies recently downgraded the stock to underperform, citing competitive pressure and price concerns in the US. Meanwhile, UBS analysts are concerned about Novo’s 8 billion Danish kroner ($1.23 billion) valuation one-time cost He stated that the financial statements regarding the restructuring do not fully reflect profitability, and added that investors continue to question the group’s lack of consumer experience in the American market.

The price of Novo’s blockbuster weight-loss drug Ozempic will be “much lower” as part of the administration’s discussions with the company about pricing, U.S. President Donald Trump said at an Oct. 17 press conference.