UBS downgrades Novo Nordisk rating on challenges from copycats, competition

** UBS cuts its rating on Novo Nordisk NOVO_B to "neutral" from "buy", citing several challenges to the company's growth

** After speaking to two experts, UBS expects compounders, or copycat versions of Novo's obesity treatments, to remain in the U.S.

** The broker also notes that Novo is losing share to Eli Lilly LLY and does not expect the company to regain leadership in the GLP-1 market

** "Despite there being a significant unmet medical need and anti-obesity medication only recently launched, Novo has not been able to build on its market-leading position, and growth for its GLP-1 portfolio has stagnated," says UBS

** UBS adds that U.S. President Donald Trump's proposal to reimburse GLP-1 obesity in Medicare could boost volumes

** It flags, however, that demands to cut prices to match those paid overseas, under the so-called most-favoured nation (MFN) policy, could reduce value

** Novo's stock down 1.7% at 1330 GMT; it lost 32% last week after slashing its 2025 forecast and naming an insider as new CEO