COPENHAGEN, Denmark — Analysts are conserving an in depth eye on Novo Nordisk and Eli Lilly and Firm because the battle for dominance within the weight-loss drug market heats up. Novo Nordisk, Europe’s largest firm, has been dominating headlines for the reason that anti-obesity drug was launched. The corporate, which makes weight reduction and diabetes medicine Wegovy and Ozempic, has seen its inventory rise exponentially as demand soars. However as competitors within the business intensifies — particularly from Eli Lilly and Co. — some traders query which firm will come out on prime. For instance, Soros Fund Administration, the household workplace of George Soros, lower its stake in Novo Nordisk, in response to paperwork launched final week. Evan Seigerman, a biotech analyst at BMO Capital Markets, mentioned there’s a key distinction between Novo Nordisk and its U.S. rivals. “The distinction between these two names is that [Eli] Eli Lilly has positively gotten a deal with on the provision points … and Novo remains to be attempting to provide Wegovy to the U.S. market,” he informed CNBC’s Energy Lunch earlier this month. All doses of Eli Lilly’s weight-loss injection Zepbound at the moment are out there within the U.S. after two firms skilled provide points, whereas some doses of Wegovy stay out there after BMO lower its doses, in response to the Meals and Drug Administration. restricted. Shares rose 9.5%, beating estimates, whereas Novo Nordisk shares fell 6.7%. Barclays analysts mentioned of the Danish firm, questioning whether or not the numbers have been “ok” for traders. engaging market”. When requested why long-term traders should purchase the inventory, he informed CNBC: “Should you like weight problems, for those who like kind 2 diabetes, then that is the place to come back as a result of we’re actually targeted on that. We’re doing it There’s an adjacency within the cardioembolic illness house, and I feel we’ve got sufficient information to make a distinction,” he mentioned as the corporate launched its newest outcomes. In the meantime, Eli Lilly CEO David Ricks informed CNBC that his firm is seeing “unimaginable demand, and we’re” not even attempting that onerous to advertise the drug. Extra provide,” he added. Analysts, in the meantime, 21 of the 32 analysts masking Novo Nordisk have purchase or obese scores on the inventory, in response to FactSet, making Eli Lilly The typical upside potential is roughly 10.3%. At 9.7%, “Finally, these two firms will proceed to be the market leaders.” Nonetheless anticipated to be the most important pharmaceutical firm we’ve got ever seen. “I do not see something that may forestall me from persevering with to imagine that the duopoly of those two firms as market leaders will proceed over time,” she mentioned. “Persevering with to see upward revisions to their gross sales numbers at the moment.” She additionally famous that the corporate has a “enormous catalyst” coming earlier than the tip of the yr: Section III information from a examine of a brand new weight problems drug, cagrisema. It is up about 46% within the month, whereas Eli Lilly’s shares are up 68% in the identical interval — CNBC’s Katrina Bishop contributed to this report.
