Street Viev: Novo Nordisk may struggle to attract investors

** Novo Nordisk NOVOb.CO cut its full year forecasts on Wednesday and appointed insider Mike Doustdar as its new Chief Executive

Following both news shares in the Danish obesity drug maker tumbled 23% , marking their worst slump on record.

The stock falls 2.5% at 08:00 GMT in Copenhagen.

COMPETITION, PIPELINE PROBLEMS TO MAR INVESTORS SENTIMENT

Barclays analysts downgrade Novo to "equal-weight" from "overweight", warning of growing concerns over late-stage pipeline and growing competition

"We struggle to see what will get investors to return the story", the broker says adding the conference call for investors failed to clarify how and when those issues could be resolve

J.P.Morgan analysts say they expect the company to return to growth in U.S scripts in the near term

However they warn that given the profit warning investors may remain cautious "pending evidence of execution against the new targets".

Cowen notes that there should be little remaining downside risk to the near-term outlook, and focus should shift to the pipeline

It also warns that the rising competition, particularly that from Eli Lily LLY.N, seems to be a major problem for the Danish group

Jefferies says investors might also take the profit warning as a bad sign for the obesity market in general, even though Novo comments suggest problems concern only a soft growth for Wegowy and Ozempic drugs in the U.S.