Latest news with #EliLillyLLY
Yahoo
02-06-2025
- Business
- Yahoo
Weight Loss Drug ETF (THNR) Hits New 52-Week High
Amplify Weight Loss Drug & Treatment ETF THNR is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 51.9% from its 52-week low price of $18.56/share. Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed. The underlying VettaFi Weight Loss Drug & Treatment Index comprises of global companies who are manufacturers in the GLP-1 agonist pharmaceutical business or who enable such business. The product charges 59 bps in annual fees. Weight-loss drug market has been in a hot pot lately. The ETF has large weights in Novo Nordisk NVO and Eli Lilly LLY. Both stocks have an individual weight of more than 10% of the fund. With each of the stocks gaining more than 2% on May 30, 2025, the fund had every reason to surge. The ETF THNR might falter on its strong performance in the near term, with a negative weighted alpha of 12.86. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amplify Weight Loss Drug & Treatment ETF (THNR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Eli Lilly vs. AstraZeneca: Which Pharma Powerhouse is the Better Buy?
Eli Lilly LLY and AstraZeneca AZN are leading drugmakers with significant involvement in oncology, immunology, and the cardiometabolic disease space. Both are making substantial investments in next-generation therapies such as cancer immunotherapies, treatments for respiratory conditions as well as GLP-1 drugs. With robust, research-driven pipelines and strong growth potential, they represent an intriguing comparison for investors considering large-cap pharmaceutical stocks. Though both companies have a diversified product profile, Lilly's largest segment is Cardiometabolic Health, which accounts for 72% of its total revenues. Lilly has a strong portfolio of medicines to treat diabetes and other cardiometabolic diseases. Its cardiometabolic business is its most successful business, particularly with the success of its popular GLP-1 drugs, Mounjaro for diabetes and Zepbound for obesity. On the other hand, Oncology is AstraZeneca's biggest segment, comprising around 41% of its total revenues. The company is working on strengthening its oncology product portfolio through label expansions of existing products and advancement of oncology pipeline candidates. Both Lilly and AstraZeneca are seeing strong sales and earnings growth. But which one is a better investment today? Let's take a closer look at their fundamentals, growth prospects and challenges to make an informed choice. Lilly boasts a wide range of products that serve a vast number of therapeutic areas. The company focuses primarily on cardiometabolic health, neuroscience, oncology and immunology, which are all high-growth areas with significant commercial potential. Despite being on the market for less than three years, Mounjaro and Zepbound became key top-line drivers for Lilly, with demand rising rapidly. Mounjaro and Zepbound generated combined sales of $6.15 billion in the first quarter of 2025, accounting for around 48% of the company's total revenues. Though sales of Mounjaro and Zepbound were below expectations in the second half of 2024, hurt by slower-than-expected growth and unfavorable channel dynamics, their sales picked up in the first quarter of 2025, driven by launches of the drugs in new international markets and improved supply from ramped-up production. We believe that increased uptake in outside U.S. markets and deeper penetration in the U.S. market will continue to drive Mounjaro and Zepbound's growth in future quarters. Approvals for new indications can also drive sales of Mounjaro and Zepbound higher. Other than Mounjaro and Zepbound, Lilly has gained approvals for some other new drugs in the past couple of years across different therapeutic areas like Omvoh, Jaypirca, Ebglyss and Kisunla (donanemab). Lilly expects its new drugs, Mounjaro, Zepbound, Omvoh, Jaypirca, Ebglyss and Kisunla, along with the expanded use of existing drugs, to drive sales growth in 2025. Lilly is also making rapid pipeline progress in obesity, diabetes and cancer, with several key mid and late-stage data-readouts expected this year. Lilly is investing broadly in obesity and has several new molecules currently in clinical development. In terms of capital allocation, LLY returned $2.5 billion to shareholders in the first quarter via share repurchases and dividends. The board of directors of Lilly approved a new $15 billion stock buyback plan and also announced a 15% increase in its quarterly dividend in 2024. Lilly has its share of problems. Sales of its key medicine, Trulicity, are declining in the United States due to competitive dynamics, including Mounjaro switches and supply constraints. Prices of most of Lilly's products are declining in the United States. Potential competition in the GLP-1 diabetes/obesity market is another headwind. The stock also took a hit this month because CVS Caremark, a major pharmacy benefit manager ('PBM'), announced a partnership with rival Novo Nordisk NVO to make NVO's Wegovy its preferred GLP-1 therapy for weight loss, effective July 1. NVO also recently announced partnerships with telehealth providers Hims & Hers Health to offer Wegovy at a discounted price to cash-paying patients. Though Lilly's CEO, Dave Ricks does not expect CVS' decision to exclude Zepbound in favor of Wegovy to hurt Lilly's revenues, we believe it may hurt Zepbound's market share. Headquartered in Cambridge, the United Kingdom, AstraZeneca boasts a diversified geographical footprint as well as a product portfolio with several blockbuster medicines. AstraZeneca now has 16 blockbuster medicines in its portfolio with sales exceeding $1 billion, including Tagrisso, Fasenra, Farxiga, Imfinzi, Lynparza, Calquence and Ultomiris. These drugs are driving the company's top line, backed by increasing demand trends. The company is confident that the growth will continue in 2025. Almost every new product it has launched in recent years has done well. Newer drugs like Wainua, Airsupra, Saphnelo, Datroway (partnered with Daiichi Sankyo) and Truqap are also expected to continue to contribute to top-line growth in 2025. Backed by its new products and pipeline drugs, AstraZeneca believes it can post industry-leading top-line growth in the 2025-2030 period. AstraZeneca expects to generate $80 billion in total revenues by 2030, a significant increase from the $54 billion it generated in 2024. By the said time frame, AstraZeneca plans to launch 20 new medicines, with nine new medicines already launched/approved. It believes that many of these new medicines will have the potential to generate more than $5 billion in peak-year revenues. The company is also on track to achieve a mid-30s percentage core operating margin by 2026. AstraZeneca faces its share of challenges. The impact of Part D redesign hurt sales of AZN's older drugs, Tagrisso, Lynparza and Ultomiris, as well as newer drugs, Truqap and Wainua, in the United States in the first quarter of 2025, with the trend expected to continue through the rest of the year. AstraZeneca expects Farxiga and Lynparza to be included in the volume-based procurement plans in China in mid-2025, which can hurt sales of these drugs in the country. Pricing and competitive pressure in Europe and generic competition in some emerging markets are expected to hurt drug sales. In 2025, generic/biosimilar competition in the United States is expected to hurt sales of key drugs like Brilinta and Soliris. Sales in its Rare Disease segment are expected to be slower in 2025 than in 2024. As regards shareholders' returns, AstraZeneca intends to increase its annual dividend per share to $3.20 per share in 2025. The Zacks Consensus Estimate for LLY's 2025 sales and EPS implies a year-over-year increase of 32.6% and 70.0%, respectively. EPS estimates for 2025 as well as 2026 have declined over the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for AstraZeneca's 2025 sales and EPS implies a year-over-year increase of 6.7% and 9.3%, respectively. EPS estimates for both 2025 and 2026 have risen over the past 60 days. Image Source: Zacks Investment Research Year to date, while LLY's stock has declined 5.7%, AstraZeneca's stock has risen 9.8%. The industry has declined 4.5% in the said time frame. Image Source: Zacks Investment Research Both Lilly and AZN are priced higher than the industry from a valuation standpoint. Lilly is more expensive than AstraZeneca, going by the price/earnings ratio. Lilly's shares currently trade at 28.31 forward earnings, higher than 15.13 for AZN. However, both AZN and LLY are trading at discounts to their 5-year mean. Image Source: Zacks Investment Research Lilly's dividend yield is 0.8%, while AZN's is much higher at around 2.9%. Image Source: Zacks Investment Research Lilly's return on equity of 85.5% is higher than AZN's 33.1%. Both Lilly and AstraZeneca have a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Lilly is a good stock to have in one's portfolio, considering its diversified product and pipeline portfolio and robust growth prospects despite its expensive valuation. Lilly's tremendous success with Mounjaro and Zepbound has made it the largest drugmaker with a market cap of more than $650 billion. In 2025, Lilly expects to record revenues in the range of $58.0 billion to $61.0 billion, indicating an impressive 32% year-over-year growth. However, considering Lilly's several near-term challenges, AstraZeneca looks like a safer bet for short-term investors, given its price appreciation, cheaper valuation and robust growth prospects. Despite the potential impact from Part D redesign, AstraZeneca expects total revenues to grow by a high single-digit percentage at CER in 2025. AstraZeneca expects core EPS to increase by a low double-digit percentage. Consistently rising estimates also indicate analysts' optimistic outlook for growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-05-2025
- Business
- Yahoo
Initial Claims More Than Expectations
Pre-market futures are up this morning, though somewhat muted from levels prior to economic reports out this morning on unemployment claims. We also see a full compliment of Q1 earnings reports ahead of today's opening bell, with another couple 'Mag 7' companies due to report after today's close. For months, we've been talking in this space about the steadiness and resiliency of weekly unemployment claims. While other metrics on the economy and employment have begun to show some volatility of late, these Thursday morning releases have for the most part kept a ceiling of 225K on near-term claims and sub-1.9 million on longer-term claims. That changes this morning, on both week, 241K Americans filed for unemployment on Initial Jobless Claims, well north of the 225K analysts were expecting and slightly upwardly revised 223K for the previous week. This level north of 240K was last reached back in the third week of February this year, which stands as an outlier relative to weeks on either side. Perhaps that will be the case here, as well. Future weeks will let us Claims breached 1.9 million for the first time in several weeks: 1.916 million were filed two weeks ago (longer-term claims report a week in arrears from new claims), the highest level (for now) since November 2021. But we have been here before: previous weeks this year have initially sounded the 1.9 million gong, only to revised it back down to the high 1.8 million level the following week. Again, we need to wait to see in future weeks whether this gets taken back below that threshold or start developing signs of labor market weakness. Big Pharma staple Eli Lilly LLY posted mixed results ahead of today's open, missing on earnings — $3.34 per share versus $3.52 expected, for a negative surprise of -5% — while beating on revenues: $12.73 billion, +0.8% from projections and well ahead of last year's $8.77 billion reported. Sales on weight-loss drug Mounjaro surged to $3.84 billion in the quarter. However, while forward revenue guidance was kept intact, LLY shares are down -4.7% on the news this MCD was also mixed in its Q1 report ahead of today's open, with earnings of $2.67 per share advancing past the Zacks consensus by 3 cents on revenues of $5.96 billion, which missed expectations by -2.12%. Same-store sales fell to their lowest levels in 5 years (the dreaded 'Covid era') and shares had been down -2% on the news. This cuts into the company's +10% gains year to Health CVS, which has re-prioritized its business away from expensive brick-and-mortar shops, posted a big Q1 earnings beat this morning: $2.25 per share versus $1.71 anticipated, for a +31.6% quarterly beat. Revenues of $94.59 billion in the period outpaced estimates by +1.76%. CVS is quietly one of the big success stories in 2025: shares are up another +8.7% at this hour, adding to its +48% gains year to no company this morning posted a bigger upside surprise than home goods supply firm Wayfair W, which swung to a positive +$0.10 per share on earnings from -$0.18 expected, for a surprise of +155%. Revenues of $2.73 billion for the quarter was +0.70% ahead of estimates, and exactly in-line with the previous month. Shares are up +6% in early trading; it still has a ways to go before it makes back the -32% in losses, year to date. For more on W's earnings, click here. Once regular trading opens for business this morning, we'll await the final print on S&P Manufacturing PMI and ISM Manufacturing, both for April. The S&P print looks to dial back narrowly to 50.6 — importantly, still above the 50-threshold that determines gain from loss. ISM Manufacturing, however, is expected to recess deeper into that sub-50 mire: 47.8% in the consensus estimate; 49.0% was the headline last time Spending results for March will also be in the offing a little later this morning. These are expected to drop half a percentage point month over month — from +0.7% for February to +0.2% the following month. These data sets look into the past a bit; we expect metrics like these to experience bigger changes as current trade policy in the U.S. comes under heavier today's closing bell, we'll hear from Amazon AMZN and — a half-hour after the normal session ends — Apple AAPL on Q1 earnings results. These are the two 'Mag 7' stocks we referred to earlier. Elsewhere, this afternoon also brings us Mastercard MA, Amgen AMGN and Twilio TWLO earnings after the bell, among many others. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Mastercard Incorporated (MA) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Wayfair Inc. (W) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
21-04-2025
- Business
- Yahoo
LLY Stock Up as Oral GLP-1 Pill Meets Goals in First Phase III Study
Shares of Eli Lilly LLY soared 14.3% on April 17 after data from a late-stage study showed that orforglipron achieved the primary goal of significantly reducing A1C levels compared to placebo at 40 weeks, with an average A1C reduction of 1.3% to 1.6% from a baseline of 8%. LLY's orforglipron is an investigational, once-daily small-molecule oral GLP-1 receptor agonist that can be administered at any time of the day without restrictions on food and water intake. The phase III ACHIEVE-1 study, the first of seven late-stage studies, is evaluating the safety and efficacy of orforglipron compared to placebo in adults with type 2 diabetes (T2D) and inadequate glycemic control with diet and exercise alone. The enrolled patients in the 40-week study were randomized equally to receive either a 3 mg, 12 mg or 36 mg dose of orforglipron or placebo. Lilly is also developing a version of this oral drug for obesity. The candidate also met the key secondary endpoint in the ACHIEVE-1 study, as more than 65% of the patients receiving the highest dose of orforglipron reached A1C levels of 6.5% or lower — the threshold used by the American Diabetes Association to define diabetes. Additionally, patients taking the highest 36 mg dose lost an average of 16 pounds, which translates to 7.9% of their total body weight, another key secondary endpoint. Interestingly, weight loss was still ongoing when the study concluded. This suggests that a higher weight loss percentage may be observed with the candidate over a longer treatment duration. Year to date, shares of Lilly have gained 8.8% against the industry's 3.3% decline. Image Source: Zacks Investment Research Additionally, analysis of the phase III study data, regardless of treatment adherence, showed that patients receiving orforglipron achieved statistically significant reductions in A1C across all doses, with the 12 mg and 36 mg doses also showing statistically significant weight loss. The overall safety profile of orforglipron in the ACHIEVE-1 study aligned with that of other GLP-1 therapies. Side effects were typically mild to moderate in intensity. The highest rate of treatment discontinuation due to adverse events (8%) was observed in the patient cohort receiving the 36 mg dose of orforglipron. Lilly in-licensed the candidate from Chugai Pharmaceutical in 2018. Apart from the T2D and obesity indications, orforglipron is also being explored as a potential treatment for obstructive sleep apnea and hypertension in adults with obesity. Lilly expects to report additional results from the phase III ACHIEVE clinical program, as well as data readout from the phase III ATTAIN clinical program evaluating orforglipron for weight management, later this year. It plans to submit applications to global regulatory authorities seeking the approval of orforglipron for weight management by the end of this year. Submission of regulatory applications seeking the approval of the candidate for T2D is expected in 2026. Eli Lilly and Novo Nordisk NVO currently dominate the diabetes and obesity-care market on the back of the tremendous success of their GLP-1 injections. Lilly markets its dual GIP and GLP-1 receptor agonist, tirzepatide, as Mounjaro for T2D and Zepbound for obesity, while Novo Nordisk markets its semaglutide drugs as Ozempic for T2D and Wegovy for weight management. NVO also markets Rybelsus as an oral medication for adults with T2D to control blood sugar levels, but unlike orforglipron, Rybelsus therapy has restrictions on food and water intake. Lilly's recent phase III ACHIEVE-1 success reinforces its frontrunner status in the race to develop an oral diabetes/obesity therapy. In response to LLY's successful study data, NVO's stock lost 7.6% in the last trading session. Oral medications, being more convenient than injectables, tend to boost patient adherence. Novo Nordisk is developing its oral obesity pill, amycretin, in a mid-stage study. Amycretin is a dual receptor agonist that targets two key gut hormones, GLP-1 and amylin. Eli Lilly and Company price-consensus-chart | Eli Lilly and Company Quote Lilly's first phase III success for orforglipron has also confirmed the potential efficacy of oral pills for weight management, which, if approved, would be preferred over injectable options. This likely resulted in the stock price gains of Structure Therapeutics GPCR and Viking Therapeutics VKTX, which are currently developing oral GLP-1-based obesity candidates in their pipeline in mid-stage studies. Shares of Structure Therapeuticssoared 17.4% following LLY's news. GPCR is conducting multiple mid-stage studies on its lead candidate, aleniglipron (GSBR-1290), a highly selective oral GLP-1 receptor agonist, for treating healthy overweight or obese individuals. On the other hand, shares of Viking Therapeutics gained 1.4%.VKTX is currently evaluating the safety and efficacy of the oral formulation of its experimental obesity drug, VK2735, in a mid-stage study. Last month, Viking Therapeutics reported that it has completed enrollment in the phase II VENTURE-Oral Dosing study of the candidate for the obesity indication. Data from this study is expected in the second half of 2025. The rapid advancements being made by Viking Therapeutics and Structure Therapeutics in the development of their respective oral obesity treatment candidates have made them lucrative targets for collaboration or M&A deals. Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Viking Therapeutics, Inc. (VKTX) : Free Stock Analysis Report Structure Therapeutics Inc. Sponsored ADR (GPCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
28-01-2025
- Business
- Yahoo
How to Play NVO Stock After New Drug's Success in Obesity Study
Novo Nordisk's NVO shares gained 8.5% on Friday after the company announced positive top-line data from an early to mid-stage study of its investigational candidate, amycretin, in overweight/obese patients. The study met its primary safety endpoint as amycretin demonstrated a safety profile consistent with incretin-based therapies. Superior dose-dependent weight loss was also observed upon treatment with the candidate over 36 weeks compared to placebo. However, this is likely to be a short-term win for the company as amycretin is only in the early stages of development. We note that clinical development involves a high degree of risk. Clinching a nod for the pipeline candidates has become more difficult due to the tough regulatory environment. Additionally, several other factors have significantly contributed to the decline of the stock recently. Last month, Novo Nordisk's shares plunged after it failed to meet the efficacy guidance for another investigational obesity candidate, CagriSema. The candidate demonstrated a weight loss of 22.7% in treated patients over 68 weeks, lower than the guided weight loss of 25%. The failure favored Novo Nordisk's arch-rival, Eli Lilly LLY, in the obesity market space whose Zepbound (tirzepatide) continues to maintain the best-in-class title for obesity treatment. The highest dose of Zepbound has shown 25% weight loss over a similar duration in a late-stage study. Lilly also markets tirzepatide under the brand name, Mounjaro, for type II diabetes (T2D). In the past six months, shares of Novo Nordisk have plunged 31.7% compared with the industry's decline of 13%. The stock has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. NVO is currently trading below both its 50 and 200-day moving averages. Image Source: Zacks Investment Research The steep drop in Novo Nordisk's stock price in the past six months has left investors wondering whether to buy, sell, or hold the stock. Let's dig deeper and understand the company's strengths and weaknesses in greater detail to understand how to play the stock. NVO's success in the past few years is underscored by its marketed semaglutide (GLP-1 agonist) medicines, marketed as Ozempic pre-filled pen and Rybelsus oral tablet for T2D and as Wegovy injection for weight management. Wegovy is a significant contributor to Novo Nordisk's revenues. Despite supply challenges limiting the company's ability to meet investor sales expectations, Wegovy has shown strong prescription growth, driving higher revenues and profits. Additionally, Ozempic sales are contributing positively to overall revenues. The company is making substantial investments to expand production capacity to address rising demand. However, Medicare has selected NVO's semaglutide medicines for the second round of price negotiations in 2025. For continued coverage of its semaglutide medicines under Medicare, Novo Nordisk has until Feb. 28, 2025, to decide if it will participate in negotiations or pay a large tax on U.S. sales of the drugs. Either way, a decline in the company's profit margins is anticipated in the future. This is a huge blow for the company. Moreover, Lilly's tirzepatide injection products have been removed from the FDA's drug shortage list. This shift suggests LLY can now meet the demand for obesity medications, potentially capturing a larger U.S. market share and boosting its revenues, while Novo Nordisk's Ozempic and Wegovy remain on the list, limiting its sales opportunities. Adding to the setbacks, Lilly's Zepbound had earlier outperformed Novo Nordisk's Wegovy (20.2% compared with 13.7%, respectively) in a weight-loss head-to-head study. This could result in a change in patient preference from Wegovy to Zepbound, again leading to a loss of market share. Several other companies like Amgen AMGN and Viking Therapeutics VKTX are making rapid progress in the development of GLP-1-based candidates in their clinical pipeline. These can pose strong competition to NVO in the future. Novo Nordisk is actively exploring additional uses for semaglutide, including evaluating Wegovy for heart failure in diabetes and obesity patients, and Ozempic as a treatment for T2D and chronic kidney disease (CKD). The company is also studying semaglutide for metabolic dysfunction-associated steatohepatitis. These efforts could expand the eligible patient base for the drug, pending approval. Wegovy's label has been expanded in the United States and the EU to reduce the risk of serious heart problems in obese/overweight adults, which has been boosting its sales. The company is looking to further expand Wegovy's label to treat patients with obesity-related heart failure with preserved ejection fraction in the EU and U.S. markets. Additionally, a late-stage cardiovascular outcomes study, evaluating oral semaglutide (Rybelsus) as an adjunct to the standard of care for the prevention of serious heart problems in T2D patients, recently met its primary endpoint. A regulatory filing seeking the label expansion of Ozempic to treat patients with T2D and CKD is currently under review in the EU. Beyond diabetes and obesity, Novo Nordisk is diversifying its portfolio by developing Mim8 for hemophilia A, with plans to submit it for regulatory approval soon. Alhemo (concizumab) recently received approval in the EU for treating haemophilia A or B with inhibitors. Alhemo is not approved in the United States. Novo Nordisk is trading at a premium to the industry, as seen in the chart below. Going by the price/earnings ratio, the company's shares currently trade at 22.73 forward earnings, which is more than 16 for the industry. Image Source: Zacks Investment Research Earnings estimates for 2024 have decreased from $3.26 to $3.13 per share over the past 60 days. During the same time frame, Novo Nordisk's 2025 earnings per share estimates have decreased from $4.10 to $3.79. Image Source: Zacks Investment Research The stock's return on equity on a trailing 12-month basis is 86.32%, which is higher than 31.88% for the large drugmaker industry, as seen in the chart below. Image Source: Zacks Investment Research Given Novo Nordisk's recent challenges, short-term investors may want to consider selling this Zacks Rank #4 (Sell) stock. Rising competition in the obesity market, coupled with Medicare's push for price reductions, has put pressure on NVO's growth prospects. Additionally, supply constraints for its semaglutide medicines have exacerbated the situation. While the company has been making significant investments to increase production, it has yet to match the success achieved by Lilly. You can see the complete list of today's Zacks #1 Rank stocks here. Long-term investors who already own the stock should consider holding onto it, as the promising amycretin data announced last week could signal the beginning of more positive updates, potentially driving the stock price higher and creating significant value in the future. Additionally, the company is working to expand the indications for Wegovy, Ozempic, and Rybelsus, aiming to increase patient eligibility—a move that, if approved, could further boost revenues. Novo Nordisk is also developing innovative obesity treatments to maintain its competitiveness, particularly in the U.S. market, which offers substantial long-term growth potential. The recent decline in the stock price over the past six months presents an attractive entry point for new long-term investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Viking Therapeutics, Inc. (VKTX) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
