Eli Lilly and Novo Nordisk reported their quarterly earnings this week, revealing insights into the way forward for GLP-1 treatment gross sales. Novo Nordisk missed gross sales expectations for its weight-loss drug Wegovy resulting from provide constraints, inflicting its inventory to drop 7%. Nonetheless, Eli Lilly exceeded projections by 13%, reporting $4.3 billion in complete gross sales for its weight-loss drug Zepbound and diabetes drug Mounjaro.
This led to a ten% surge in Lilly’s inventory and a 5% rise for Novo Nordisk, easing provide points. Additional competitors is predicted as new candidates transfer in direction of market debuts.
Earnings result in inventory surge
Tema ETFs founder and CEO Maurits Pot stated, “We expect that is going to be a four-to-six-horse race as a result of proper now you solely have one system, which is injectable, going after one remedy, which is weight reduction. However we’re seeing innovation in components of the market the place folks take a look at oral as an alternative of injectable choices and purposes past weight reduction.
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Jared Holz, healthcare sector professional at Mizuho, emphasised specializing in the long-term market potential, stating, “Lilly is a reminder that it’s foolish to have a look at both of those names on a 90-day foundation when the market is north of $100 billion. On the finish of the day, it’s nonetheless essentially the most significant market in {dollars} in all of pharma and biotech.”
Regardless of lacking Wegovy gross sales, Novo Nordisk stays a market chief with 69% international GLP-1 market share.
Nonetheless, Eli Lilly’s Zepbound has shortly develop into a blockbuster, serving to the corporate overcome provide constraints and lack of protection by giant employers and the federal authorities. Rising rivals like Pfizer, Roche, Amgen, Viking Therapeutics, and Hims & Hers are additionally poised to seize shares of this quickly rising market. The way forward for GLP-1 gross sales seems strong, with substantial market potential pushed by innovation from each established and rising gamers.