Eli Lilly's aggressive tactics towards rival companies, particularly Novo Nordisk, may negatively impact investments in share holdings. Consider reconsidering your Novo Nordisk stock sales.
In a new study, Eli Lilly takes the lead, but don't giggle at Novo Nordisk just yet.
The pharmaceutical world has been buzzing with the latest statistics, causing stocks to dance for giants Novo Nordisk and Eli Lilly. A study sponsored by Eli Lilly, comparing 72-week weight loss injections Zepbound from Lilly and Wegovy from Novo Nordisk, showcased the Americans' drug outshining its competitor. On average, patients treated with Zepbound lost a hefty 20.2% of their weight, while Wegovy could only manage 13.7%.
Zepbound, a GIP and GLP-1 receptor agonist, battles it out with Wegovy, a mono-GLP-1 receptor agonist from Novo Nordisk. The results also impacted the stocks. Novo Nordisk's shares plummeted by nearly two percent post-announcement, while Eli Lilly's shares surged by two percent.
Novo Nordisk (ticker: WKN: 866931): Investors, don't dismiss Novo Nordisk's stock just yet.
Novo Nordisk hasn't lost its allure in the eyes of investors. The forecasted market volume for weight loss drugs reaching a whopping 130 billion US dollars by the end of the decade should be enough to inspire enough confidence that the industry will produce several triumphs.
Moreover, Novo Nordisk dominated the market early with their weight loss medication. However, more significantly: the Danes aren't resting on their laurels—they might already have their next blockbuster waiting in the wings.
Novo Nordisk's new drug could top Eli Lilly
By the end of the year, we can expect data from an advanced study on a new combination therapy dubbed "CagriSema." Novo Nordisk has high hopes for the weight loss injection, claiming that it could potentially reduce patients' weight by an astounding 25%. Even surpassing Zepbound's results. Besides, several companies, including Novo Nordisk, are working on the next generation of weight loss drugs, offering the potential for pills that could expand the pool of those who could benefit from these treatments.
In the near future, it won't just be about how much weight is lost but also the number and severity of side effects. As the current study situation is still unclear or incomplete regarding these factors, they could play a significant role in a company's success. Hence, it's still a neck-and-neck race between Eli Lilly and Novo Nordisk.
Additional Findings:
Novo Nordisk has recently developed a new obesity drug called Amycretin. In a Phase 1/2 trial, patients on the highest dose of 60 mg lost an average of 24.3% of their weight at 36 weeks, compared to just 1.1% weight loss in the placebo group. This puts Amycretin in a strong position compared to existing weight-loss drugs and is still in later stages of development.
CagriSema, another drug under development by Novo Nordisk, demonstrates similar efficacy to Zepbound in terms of weight loss but hasn't shown sustained weight loss or superiority over its competitor. Longer-term data and Phase 3 results are needed to confirm whether Novo Nordisk's Amycretin will indeed outperform Eli Lilly’s Zepbound.
Attention: If this indicator is correct, you might regret not buying more stocks
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Conflict of interest notice The author holds direct positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the price development resulting from the publication: Eli Lilly.
- Although Eli Lilly's Zepbound outperformed Novo Nordisk's Wegovy in a 72-week study, investors should not dismiss Novo Nordisk's stock yet, especially considering the forecasted market volume for weight loss drugs reaching $130 billion by the end of the decade.
- Novo Nordisk hasn't just relied on their early dominance in the weight-loss market; they are working on their next blockbuster, a potential weight loss injection named "CagriSema," which could theoretically reduce patients' weight by 25%.
- Despite the promising results of Amycretin, a new obesity drug developed by Novo Nordisk, the drug's long-term data, Phase 3 results, and comparison with Eli Lilly’s Zepbound are yet to be confirmed.
- As the focus shifts from weight loss to reducing side effects and improving health-and-wellness outcomes, Bitcoin's recent break of the $100,000 mark serves as a reminder that the stock-market and investing in cryptocurrencies, such as Ethereum, could offer potential opportunities for profits. However, it's essential to invest wisely and consider factors like conflict of interest.
