Latest news with #orforglipron
France 24
07-05-2025
- Business
- France 24
Weight-loss drugmaker Novo Nordisk slims sales forecast
Novo Nordisk blamed the revised outlook on competition from copycat versions of its popular GLP-1 injections made in US pharmacies -- a practice known as compounding. The company said it now expects sales growth of 13 to 21 percent in 2025, down from a previous forecast of 16 to 24 percent. "We have reduced our full-year outlook due to lower-than-planned branded GLP-1 penetration, which is impacted by the rapid expansion of compounding in the US," Novo Nordisk chief executive Lars Fruergaard Jorgensen said. "We are actively focused on preventing unlawful and unsafe compounding and on efforts to expand patient access to our GLP-1 treatments," he said in a statement. US pharmacies had been allowed to make their own version of Wegovy and Ozempic due to a shortage of the drugs. But US regulators ruled in February that the shortage had ended and ordered pharmacies to discontinue making the compounded versions. Novo Nordisk is also facing competition from US rival Eli Lilly, which makes the anti-obesity injection Zepbound. Novo Nordisk's shares tumbled last month after Eli Lilly announced a successful clinical trial of diabetes and obesity treatment orforglipron. The Danish group also released first-quarter results on Wednesday showing a net profit of 29 billion kroner ($4.4 billion), 14 percent higher than the same period last year and better than expected by analysts.
Yahoo
06-05-2025
- Business
- Yahoo
Eli Lilly Stock Slips on Outlook. Is It Time to Buy the Dip?
While Lilly's GLP-1 drugs continue to be a huge growth driver for the company, its new orforglipron franchise has the potential to be even bigger. Unlike other GLP-1 weight loss drugs currently on the market , orforglipron can be taken orally instead of by injection. This should expand the market for GLP-1 drugs, as many people are likely reluctant to inject a needle into their abdomen or thigh. Meanwhile, the company continues to expand Mounjaro internationally. The drug is now available in 40 countries, and recently launched in India and Mexico. Lilly will continue to bring Mounjaro to other countries throughout the year. During the quarter, Zepbound became the market leader for branded anti-obesity medications in the U.S., accounting for 60% of total prescriptions and 74% of new prescriptions in the first quarter. Lilly also introduced higher-dose vials for the self-pay market, and said these higher doses accounted for approximately 10% of total prescriptions and 25% of new prescriptions. Both drugs have the same active ingredient, tirzepatide, but are approved for different indications. Mounjaro is approved by the Food and Drug Administration (FDA) to help adults with type 2 diabetes lower their blood glucose levels, while Zepbound is approved for weight loss in obese adults or overweight adults with at least one weight-related condition, such as high cholesterol or high blood pressure. The reality, though, is that both drugs are often prescribed off-label for any type of weight loss. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The company's GLP-1 drugs continue to drive strong revenue growth. Mounjaro revenue soared 113% to $3.8 billion, while Zepbound revenue surged from $517 million a year ago to $2.3 billion. Shares of Eli Lilly (NYSE: LLY) sank after the drugmaker lowered its full-year profit outlook, and a potential headwind to pricing and access to its drug Zepbound emerged. However, the guidance reduction stems from an up-front payment it made to acquire Scorpion Therapeutics' STX-478 program to treat breast cancer. This is a one-time financial adjustment related to accounting that has no bearing on its business operations. The company's new oral GLP-1 drug, which avoids the use of injections, has huge potential. But news about its Zepbound drug, along with lowered profit guidance, hurt the shares. Story Continues The drug also isn't expected to have the same supply constraints as injectable GLP-1 drugs, which need specialized injection pens as well as cold storage and shipping. Orforglipron won't require either of these things, making its manufacturing and transport a lot easier. Lilly has also been investing heavily to increase its U.S. manufacturing capacity. It has announced over $50 billion in new U.S. manufacturing investments since 2020. This includes four new facilities (three of which will manufacture active pharmaceutical ingredients) that it announced in February. The company said the recent phase 3 trial results from its Achieve-1 study support its "hypothesis that orforglipron could deliver efficacy, safety, and tolerability similar to the best seen for available GLP-1 monotherapy injectables." While the trial was for treating patients with type 2 diabetes, it showed that patients who took the drug experienced considerable weight loss. Lilly also said it was very pleased with the drug's safety profile. It has several more orforglipron trials underway for both type 2 diabetes and obesity. It plans to submit orforglipron for FDA approval for obesity in Q4, and for type 2 diabetes in the first half of 2026. All was not positive on the GLP-1 drug front, though. On the day of Eli Lilly's earnings report, CVS Health announced that its pharmacy benefit manager (PBM) unit Caremark would make rival weight loss drug Wegovy -- made by Novo Nordisk -- the preferred weight loss medication on its standard formularies (lists of covered drugs), while dropping Zepbound. On Lilly's earnings call, management noted that this was for a subset of CVS plans and not the entire CVS account. However, what this does show is that some PBMs could look to pit GLP-1 drugmakers against each other as a way to reduce prices. For its part, though, Cigna Group, which owns the PBM Express Scripts, said it had no interest in negotiating an exclusive deal with a GLP-1 manufacturer. That said, there could be some pricing pressure as a result of the actions by CVS. This makes orforglipron all the more important for Lilly's future results. Overall, Lilly grew its Q1 revenue by 45% to $12.73 billion, while adjusted earnings per share (EPS) climbed 29% to $3.34. However, that included $1.72 of acquired "in-process research and development" (IPR&D) charges from the aforementioned acquisition of Scorpion Therapeutics' STX-478 program. The results still topped analyst expectations, as compiled by LSEG, for adjusted EPS of $3.02 on sales of $12.67 billion. Looking ahead, the company maintained its sales forecast for revenue of between $58 billion and $61 billion. Due to the acquired IPR&D charges, however, it lowered its full-year EPS guidance to a range of $20.78 to $22.28, from an earlier outlook of $22.50 to $24. Image source: Getty Images. Should investors buy the dip on Eli Lilly? The CVS news overshadowed what was a strong overall quarter from Eli Lilly and its GLP-1 drugs. I wouldn't be surprised to see some price erosion in the injectable versions. However, I think orforglipron has the potential to become the biggest GLP-1 drug on the market. The hypothesis is quite simple: People will prefer taking a weight-loss pill rather than having to stick themselves with needles, and they'll be willing to pay more to do so as well. Throw in the benefits of less complex manufacturing, storage, and transportation, and the drug has immense potential. Following the sell-off, Lilly trades at a forward price-to-earnings (P/E) of 37 times 2025 analyst estimates, with a price-to-earnings-to-growth (PEG) ratio of 0.4. PEGs below 1 are generally considered undervalued, so on that basis, the stock is very inexpensive. The GLP-1 market continues to see rapid growth. And while there's currently some pricing pressure, that appears to be accounted for in Lilly's valuation. What is not priced into the stock, though, is the huge potential of orforglipron. That makes Eli Lilly a buy in my book. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,589!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $697,613!* Now, it's worth noting Stock Advisor's total average return is 894% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and Novo Nordisk. The Motley Fool has a disclosure policy. Eli Lilly Stock Slips on Outlook. Is It Time to Buy the Dip? was originally published by The Motley Fool
Yahoo
02-05-2025
- Business
- Yahoo
Eli Lilly stock sell-off was 'overreaction': Analysts
Despite beating on its earnings Thursday, pharma giant Eli Lilly (LLY) suffered a nearly 12% loss in its stock, losing more than $90 billion in market cap in a single day. The move, some analysts say, was an overreaction to the news that GLP-1 competitor Novo Nordisk (NVO) locked up a preferred listing deal with CVS (CVS) on its formulary for obesity drug Wegovy to the exclusion of Eli Lilly's drug Zepbound. "We think the market reaction was overdone and are thus reiterating our OP [Outperform] rating on LLY," Leerink Partners analyst David Risinger wrote in a note to clients Friday. Risinger also lowered Eli Lilly's price target from $989 to $944 on the formulary news, calling it a negative in a note Thursday. Read more about Eli LIlly's stock moves and today's market action. The deal with CVS is the latest this week as Novo Nordisk pushes for more access points for Wegovy, which has been overtaken in weekly prescription fillings by Eli Lilly's Zepbound, including deals with telehealth platforms like Hims & Hers (HIMS). It's a key reason why Novo Nordisk's stock is down more than 25% in the past two months. "LLY is taking ~75% share on new branded obesity scripts," Jefferies analyst Akash Tewari wrote in a note to clients Thursday. He questioned whether Novo Nordisk's move was the right one. This also sparked concern that Novo Nordisk's moves could hamper Eli Lilly's momentum — and launch a price war — which pressured Eli Lilly's stock Thursday. Eli Lilly's stock looked to be slightly reversing its losses in trading Friday, up more than 4% at market open. "The move today reminds of what we say frequently: expect volatility, take advantage of moment of weakness, as long as there is not a new, fundamental crack in the story — no such cracks surfaced today, in our opinion," BofA Securities analyst Tim Anderson wrote in a note to clients Thursday. The overarching concern with the CVS/Novo Nordisk deal is whether this starts a race to the bottom on pricing between the two GLP-1 market leaders. The stock action Thursday assumed the CVS move would drive down price, and therefore profits, for both companies in the GLP-1 market, driven by a "desperate" Novo Nordisk, BofA's Anderson said. Eli Lilly CEO David Ricks signaled he was not interested in such a race and instead is focusing on near-term wins with next-generation GLP-1s and the highly anticipated orforglipron, an obesity pill that could hit the markets mid-next year. "We're not interested in exclusive deals. We think innovation and choice is very important. And we're well into the product replacement cycle, and there's more coming," Ricks told Yahoo Finance. That sentiment was reflected in some analyst notes late Thursday. Jefferies' Tewari wrote in a note that Lilly still "has one of the most sustainable growth stories in the next 5-10 years." He expressed doubt that the impacted pool of patients would be significant and shrugged off the idea that this was the starting gun of a price war. "We're skeptical that NVO is making irrational pricing decisions & that a single formulary will lead to a race to the bottom on pricing," he wrote. JPMorgan's Chris Schott similarly wrote, "We do not see the CVS announcement as portending an acceleration in price declines across the space," and he does not see this as "leading to a price war." BofA's Anderson had a slightly different take. "It's not to say that there's not going to be erosion in price, I mean there is, each and every year. This is not a sudden step-change. I think it's being taken out of proportion," he said. But time will tell if the move is a desperate one on the part of either CVS or Novo Nordisk, with broader impacts, or one that doesn't move the needle at all. "I do think Novo, they are trying to prove to their shareholders that they're going to see inflection of their franchise and return to growth later in the year. That's why they signed that Hims deal, that's why they can talk about the CVS deal. I think this is free advertising for CVS and Novo," BofA's Anderson said. "I think Novo is trying to convey ... there's always negotiations with payers, but they're not out there undermining a market. And that's how Lilly's stock is reacting," he said, adding CVS may have been overstating the impact of the formulary decision on the call. Most analysts said the impact on Eli Lilly should be limited and that a key indicator would be employer-sponsored insurance plans and how they react to the formulary option. "It remains to be seen how attractive this change will be to employers given differences in product profiles while patients could also look to go through exemption processes to keep their prescriptions," Schott wrote. He added, "LLY noted that the change primarily impacts smaller employers, who likely have lower employer opt-in rates on average (while larger employers largely utilize more customized formularies)." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Eli Lilly stock sell-off was 'overrreaction': Analysts
Despite beating on its earnings Thursday, pharma giant Eli Lilly (LLY) suffered a nearly 12% loss in its stock, losing more than $90 billion in market cap in a single day. The move, some analysts say, was an overreaction to the news that GLP-1 competitor Novo Nordisk (NVO) locked up a preferred listing deal with CVS (CVS) on its formulary for obesity drug Wegovy to the exclusion of Eli Lilly's drug Zepbound. "We think the market reaction was overdone and are thus reiterating our OP [Outperform] rating on LLY," Leerink Partners analyst David Risinger wrote in a note to clients Friday. Risinger also lowered Eli Lilly's price target from $989 to $944 on the formulary news, calling it a negative in a note Thursday. Read more about Eli LIlly's stock moves and today's market action. The deal with CVS is the latest this week as Novo Nordisk pushes for more access points for Wegovy, which has been overtaken in weekly prescription fillings by Eli Lilly's Zepbound, including deals with telehealth platforms like Hims & Hers (HIMS). It's a key reason why Novo Nordisk's stock is down more than 25% in the past two months. "LLY is taking ~75% share on new branded obesity scripts," Jefferies analyst Akash Tewari wrote in a note to clients Thursday. He questioned whether Novo Nordisk's move was the right one. This also sparked concern that Novo Nordisk's moves could hamper Eli Lilly's momentum — and launch a price war — which pressured Eli Lilly's stock Thursday. Eli Lilly's stock looked to be slightly reversing its losses in trading Friday, up more than 4% at market open. "The move today reminds of what we say frequently: expect volatility, take advantage of moment of weakness, as long as there is not a new, fundamental crack in the story — no such cracks surfaced today, in our opinion," BofA Securities analyst Tim Anderson wrote in a note to clients Thursday. The overarching concern with the CVS/Novo Nordisk deal is whether this starts a race to the bottom on pricing between the two GLP-1 market leaders. The stock action Thursday assumed the CVS move would drive down price, and therefore profits, for both companies in the GLP-1 market, driven by a "desperate" Novo Nordisk, BofA's Anderson said. Eli Lilly CEO David Ricks signaled he was not interested in such a race and instead is focusing on near-term wins with next-generation GLP-1s and the highly anticipated orforglipron, an obesity pill that could hit the markets mid-next year. "We're not interested in exclusive deals. We think innovation and choice is very important. And we're well into the product replacement cycle, and there's more coming," Ricks told Yahoo Finance. That sentiment was reflected in some analyst notes late Thursday. Jefferies' Tewari wrote in a note that Lilly still "has one of the most sustainable growth stories in the next 5-10 years." He expressed doubt that the impacted pool of patients would be significant and shrugged off the idea that this was the starting gun of a price war. "We're skeptical that NVO is making irrational pricing decisions & that a single formulary will lead to a race to the bottom on pricing," he wrote. JPMorgan's Chris Schott similarly wrote, "We do not see the CVS announcement as portending an acceleration in price declines across the space," and he does not see this as "leading to a price war." BofA's Anderson had a slightly different take. "It's not to say that there's not going to be erosion in price, I mean there is, each and every year. This is not a sudden step-change. I think it's being taken out of proportion," he said. But time will tell if the move is a desperate one on the part of either CVS or Novo Nordisk, with broader impacts, or one that doesn't move the needle at all. "I do think Novo, they are trying to prove to their shareholders that they're going to see inflection of their franchise and return to growth later in the year. That's why they signed that Hims deal, that's why they can talk about the CVS deal. I think this is free advertising for CVS and Novo," BofA's Anderson said. "I think Novo is trying to convey ... there's always negotiations with payers, but they're not out there undermining a market. And that's how Lilly's stock is reacting," he said, adding CVS may have been overstating the impact of the formulary decision on the call. Most analysts said the impact on Eli Lilly should be limited and that a key indicator would be employer-sponsored insurance plans and how they react to the formulary option. "It remains to be seen how attractive this change will be to employers given differences in product profiles while patients could also look to go through exemption processes to keep their prescriptions," Schott wrote. He added, "LLY noted that the change primarily impacts smaller employers, who likely have lower employer opt-in rates on average (while larger employers largely utilize more customized formularies)." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
Yahoo
30-04-2025
- Business
- Yahoo
PepsiCo CEO was grilled about GLP-1s by a 13-year-old on his Q1 conference call
The 13-year-old daughter of a Jefferies analyst asked about the effect of GLP-1 oral medications during PepsiCo's most recent quarterly earnings call, as part of 'Bring your Kid to Work Day.' CEO Ramon Laguarta took the question seriously, saying his company was marketing snacks in smaller portions to target consumers with smaller appetites. PepsiCo CEO Ramon Laguarta was no doubt expecting tough questions during the company's Q1 earnings call; what he probably wasn't expecting was to be interrogated about the effect of pharmaceuticals on the human digestive system by a 13-year-old. Amid inquiries on revenue, tariffs, and volumes that could have comprised any other earnings call that day, Jefferies analyst Kaumil Gajrawala surprised Laguarta by letting his daughter Milena Gajrawala ask a question. 'Hey guys, it's 'Bring Your Kid to Work Day' at Jefferies. So, if you don't mind, my daughter Milena's going to ask the question,' Gajrawala said. Far from lobbing a softball question, the 13-year-old Milena Gajrawala struck at a core issue for PepsiCo and other food companies: the threat of weight-loss inducing GLP-1 medications that curb the appetites of consumers. 'So what do you think about the launch of GLP-1 oral medications coming to market next year?' she asked. Before answering, Laguarta said, 'That's awesome,' and then launched into a serious response that highlighted the company's 'fiber and hydration solutions.' 'We thought Milena asked a fair question and Ramon was happy to answer it. Hearing from her was a pleasant surprise on what is always a busy day," a PepsiCo spokesperson said in a statement to Fortune. The younger Gajrawala mentioned oral GLP-1 medications, one of which—orforglipron by Eli Lilly—is already in late-stage clinical trials. Orforglipron's potential advantage is that it is an oral medication—competitor Ozempic requires regular injections—but has a similar weight-loss effect. The drug could thus supercharge the adoption of this class of medication, which helps suppress appetite and is already cutting into the profits of snack makers and other food companies. Laguarta mentioned that another way the company is battling a potential GLP-1 slump is by emphasizing its smaller-portion snacks. 'They're eating less quantities, so our offerings in the small portions and whether it's in multipack or some other options that we provide keeps our brands in their repertoire and it's still relevant,' he said in response to Gajrawala's question. On another earnings call that day, Gajrawala also let his son, 13-year-old Kamran Gajrawala, get in on the action. Kamran Gajrawala asked the CEO of Keurig Dr Pepper a question about Dr Pepper's new blackberry-flavored soda. 'Wow, fantastic. I think it's my first ever question from a young person, and I appreciate it, Kamran. And I hope Kamran is a big fan of Dr Pepper Blackberry,' CEO Tim Cofer said. Wall Street has a venerable history of extracting investment wisdom from teenagers. In 2009, 15-year-old Matthew Robson, an intern at Morgan Stanley, was allowed to write a research note on how he and his friends consumed media. He reported that they didn't read newspapers and that few watched TV. None of them used Twitter, he wrote. And earlier this year Fortune asked a 14-year-old to canvass her friends on why they stopped trusting traditional media in favor of influencers they know are unreliable. Influencers feel like trustworthy friends, whereas adults are the enemy, she found. This story was originally featured on
