Eli Lilly’s (LLY) stock price took a hit Thursday after competitor Novo Nordisk (NVO) secured a deal to have its GLP-1 weight-loss drug listed on CVS’s formulary as the preferred treatment for patients. The move has been seen as a blow to Eli Lilly’s Wegovy, which has lost ground to Zepbound in recent months.
Novo Nordisk announced deals with telehealth companies like Hims & Hers and specialty pharmacies like Humana’s CenterWell to increase access to Wegovy. The company also signed an exclusive deal with CVS, but CEO David Ricks waved off the move, citing innovation and choice as priorities for the company.
Ricks emphasized that Eli Lilly is focused on upcoming obesity drugs in its pipeline and believes in the success of Zepbound. He noted that securing exclusive deals was a relic of the past and that the company’s direct-to-consumer platform was doing better than expected.
Analysts, however, have been more cautious, with BofA Securities analyst Tim Anderson saying that the market had overreacted to the news. Red Brook Advisors managing partner Syed Husain agreed, stating that the market reaction was a bit of an overreaction.
Despite the setback, Eli Lilly remains on investors’ watchlist as its GLP-1 business continues to grow. The company’s stock price has fallen more than $90 billion in value since Thursday’s trading session.
Source: https://finance.yahoo.com/news/eli-lilly-ceo-waves-off-cvs-novo-nordisk-deal-it-feels-a-little-like-last-decade-184222200.html