Danish pharmaceutical company Novo Nordisk's share price may move more than 10% in either direction when the company releases study results for the drug Cagrisema later this year. That is the assessment of UBS.

The bank's base case assumes a positive outcome for the new obesity drug, which delivers 25% weight loss with similar to modestly higher levels of side effects compared to Wegovy.

However, there is an "asymmetric downside risk" in a worst-case scenario given the high expectations.

UBS has a recommendation of neutral with a target price of DKK 1,100.