Will Morgan Stanley's NVO Downgrade Deepen Patent and Rival Woes?

Morgan Stanley downgraded Novo Nordisk to Underweight, citing a tougher growth outlook, muted expansion prospects and increasing competitive pressure from Eli Lilly. The bank also flagged patent risks, adding uncertainty to Novo's longer-term obesity and diabetes franchise economics. The downgrade is likely to weigh on Novo shares and reinforces concerns over the durability of its growth premium.