Eli Lilly’s stock saw a significant increase on Wednesday after the U.S. government approved the company’s GLP-1 drug for obesity treatment. The FDA’s decision was no surprise, and now Eli Lilly is gearing up to market the drug as Zepbound. The stock price soared by almost 2% in response to the news, reaching $611.36 per share. However, the next significant development could occur this weekend when Eli Lilly’s chief rival, Novo Nordisk, is set to release new trial data for its GLP-1 weight-loss therapy at an American Heart Association meeting.
Investors are eagerly awaiting the full results of Novo Nordisk’s study, which showed promising top-line data released in August, indicating a 20% lower risk for major cardiovascular events in patients using the drug compared to those in the placebo group. CNBC’s Jim Cramer predicted that Eli Lilly’s stock could experience a substantial increase on Monday as a result of Novo Nordisk’s presentation, similar to what happened in August when both companies saw a surge in their stock prices.
Eli Lilly and Novo Nordisk are both dominant players in the fast-growing market for GLP-1 drugs, which are currently used to treat Type 2 diabetes and obesity. These drugs mimic a hormone in the gut that reduces appetite and help regulate blood sugar levels. Insurance coverage for these drugs is crucial for them to achieve Wall Street’s ambitious sales projections, which some analysts estimate could exceed $100 billion in the future.
Jim Cramer emphasized the importance of Novo Nordisk’s upcoming presentation for investors in Eli Lilly, pointing to the potential of Mounjaro and Zepbound to become the best-selling drugs of all time. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Overall, Eli Lilly’s approval for its GLP-1 drug as an obesity treatment marks a significant milestone, but the potential impact of new trial data from Novo Nordisk is being closely watched by investors in the pharmaceutical industry.
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