European pharmaceutical companies focused on building new drug combinations were recognized by Goldman Sachs analysts.
The Zhitong Finance App learned that European pharmaceutical companies focusing on building new drug portfolios have been recognized by Goldman Sachs analysts. Goldman Sachs analysts first gave ratings to six major pharmaceutical stocks on Thursday and stated that “innovation is the key to success.” Analysts gave AstraZeneca (AZN.US), Novo Nordisk (NVO.US), and Novartis Pharmaceuticals (NVS.US) a “buy” rating; give GlaxoSmithKline (GSK.US) and Bayer (BAYRY.US) a “neutral” rating; and give RHHBY.US (RHHBY.US) a “sell” rating.
Goldman Sachs analysts, including James Quigley, said: “For Novo Nordisk, we believe the potential risk reduction in the field of obesity treatment drugs will drive it higher.” “We are also optimistic about AstraZeneca's first-class product line and steady profit margin growth.”
According to the data, the pan-European Stoxx 600 healthcare index has risen by more than 9% since this year, with Novo Nordisk and AstraZeneca having the biggest gains. Novo Nordisk's best-selling drugs Wegovy and Ozempic helped the Danish pharmaceutical company surpass $500 billion in market capitalization this year.
Novo Nordisk has developed a combination therapy called CagrisEma, a compound preparation of simeglutide and cagrilintide (Cagrilintide) — which is a long-acting pancreatin. In previous studies, it has been proven that the effects of lowering sugar and weight loss are superior to those of simeglutide alone. According to reports, Novo Nordisk registered a head-to-head trial of Cagrisema and tirpotide in November of last year.
Meanwhile, AstraZeneca plans to invest $1.5 billion to establish a factory to produce antibody-drug conjugates (ADCs) in Singapore. The company is also entering the field of radiopharmaceuticals. The British pharmaceutical company aims to double sales to reach $80 billion by 2030.
Additionally, Goldman Sachs analysts cited Novartis' “continued strong execution” as the reason for giving the stock a “buy” rating. After years of ongoing reforms, the Swiss pharmaceutical company is driving growth and this month agreed to acquire American biotech company Mariana Oncology to strengthen its pipeline of medicines that specifically target cancer cells. The company is also acquiring German biotech MorphoSys AG, which is conducting advanced trials of a drug to treat myelofibrosis (a cancer affecting the bone marrow).