Novo Nordisk data for monlunabant ‘negative,’ says BofA

After Novo Nordisk (NVO) published its first Phase 2 data for monlunabant, its CB1 drug for obesity, BofA said the firm believes the data is “negative,” with efficacy at the bottom-end of expectations and a neuropsychiatric safety signal seen. Following the data, the firm believes investors are likely to remove CB1 from expectations given CNS safety issues seen, which remind of prior issues with Sanofi’s (SNY) Acomplia, and the focus for Novo’s oral strategy is likely to pivot back to amycretin. The limited share price move reflects investor caution headed into the data, added BofA, which expects increased investor debate around Novo’s oral strategy with Eli Lilly’s (LLY) orfoglipron Phase 3 data due in mid-2025. BofA has a Buy rating and DKK 1,150 price target on Novo Nordisk shares.