In this video, I will cover the recent updates regarding Novo Nordisk (NVO -17.83%) and whether or not the dip is worth buying over Eli Lilly (LLY 1.35%). Watch the short video to learn more, consider subscribing, and click the special offer link below.
Lilly and Novo still dominate the market for weight-loss and diabetes drugs, but the race is heating up in more ways than one.
Eli Lilly (LLY 1.35%) soared more than 60% from the start of the year through its peak this summer, thanks to the company's dominance in one of today's most in-demand areas: the obesity drug market. Lilly sells tirzepatide, a compound sold for weight loss under the name Zepbound and for type 2 diabetes under the name Mounjaro.
Investing in dividend stocks is a great strategy for many reasons, including the potential they offer you to significantly boost your long-term returns by automatically reinvesting their payouts. Furthermore, the pursuit of dividends need not come at the expense of other investment styles.
Since pharmaceutical giant Eli Lilly (LLY 1.35%) reported earnings for the third quarter on Oct. 30, shares have been punished by investors. As of this writing, Lilly's stock price has plunged as much as 14% since Q3 earnings, and it's currently trading 6% lower than it was prior to the report.
Bad news for Novo Nordisk (NVO -17.77%) Friday was good news for Eli Lilly (LLY 4.88%) and Viking Therapeutics (VKTX 5.86%), its two main rivals in the field of weight loss drugs. This morning, Novo reported headline results from its phase 3 trial of a new weight loss drug, CagriSema, and while objectively not bad, the results were less great than Novo was shooting for.
Eli Lilly stock gains as the FDA removes tirzepatide drugs from the drug shortage list following a thorough reevaluation.
As Novo Nordisk and Eli Lilly expand sales of their popular diabetes and weight-loss drugs, cheaper copies of their patented remedies are winning approval from some regulators overseas, posing a threat to the pharma giants' prices and market share.
The U.S. Food and Drug Administration said on Thursday that Eli Lilly's weight-loss drug shortage has been resolved, following a re-evaluation of the drug's supply by the agency.
The Food and Drug Administration said the active ingredient in Eli Lilly's weight loss drug Zepbound is no longer in shortage, a decision that will eventually bar compounding pharmacies from making unbranded versions of the injection. But the FDA said it will provide a 60 to 90-day transition period where it will not take action against pharmacies for making compounded tirzepatide, which will give patients time to switch to the branded version.
Eli Lilly's diverse product portfolio and promising pipeline, including Tirzepatide, Orforglipron, and Retatrutide, support a "buy" rating for long-term investors despite current valuation metrics. Zealand Pharma's weight management candidates, Survodutide and Petrelintide, show potential but face competition and valuation concerns, leading to a "hold" rating. Eli Lilly's revenue growth, driven by weight management treatments, and strategic moves like a $15 billion share buyback and dividend increase, indicate strong future prospects.
Dividend investors often prioritize stocks that have long track records for raising their payouts. But that can be a mistake.