Morgan Stanley notes Novo Nordisk (NVO) disclosed headline data for CagriSema in REDEFINE-2, with a weight loss and safety profile similar to Eli Lilly’s (LLY) tirzepatide. Share price reaction reflects the removal of an upside risk, with some investors hoping that CagriSema would outperform in this pop due to the amylin mechanism, the firm adds. Morgan Stanley argues that key debates from REDEFINE-1 remain, and says that the clinical profile similar to tirzepatide increases the importance of amycretin as a next-gen molecule to sustain the obesity franchise in the long-term. The firm has an Equal Weight on Novo on short-term uncertainties in the U.S. obesity market and a challenging catalyst path.
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