The COVID-19 pandemic vaccine narrative has taken a backseat, and the healthcare industry’s focus has shifted to weight loss. Two companies at the forefront of this trend are Eli Lilly (LLY) and Novo Nordisk (NVO), manufacturers of GLP-1 agonists used for diabetes treatment and chronic weight management.
Lilly’s market value surpasses the combined value of Pfizer, Moderna, and Johnson & Janssen. Meanwhile, Novo Nordisk is the most valuable company in Europe, ahead of luxury fashion powerhouse LVMH Moët Hennessy. However, a closer examination of their respective medications reveals significant differences.
Lilly’s Mounjaro is approved for diabetes treatment, while its sibling Zepbound targets chronic weight management. In contrast, Novo’s Ozempic and Wegovy primarily treat diabetes and obesity care, respectively. A recent clinical trial comparing Zepbound and Wegovy showed that patients taking Zepbound lost 20% of their body weight on average, while those on Wegovy lost around 14%.
Novo Nordisk’s latest weight loss candidate, CagriSema, underperformed in a phase 3 clinical trial. While it showed a 22.7% reduction in body weight, only 40% of patients achieved the targeted 25% reduction. This poor performance led to a significant decline in Novo stock.
In contrast, Lilly’s diverse portfolio and growing medical business make it a more attractive investment opportunity. The company’s Alzheimer’s disease and eczema treatments are expected to contribute to its revenue growth in the near future. With a long-term horizon, investing in Eli Lilly appears to be a no-brainer, as the company is well-positioned to dominate the weight loss market and lead the pharmaceutical industry.
Source: https://www.fool.com/investing/2024/12/26/better-buy-eli-lilly-vs-novo-nordisk-the-answer-is