Name of opportunity: 👀
Eli Lilly and Company
The superior diet drug?: 🥗
A recent study compared Eli Lilly’s drug Mounjaro to the more famous Ozempic made by Novo Nordisk. Both drugs are prescribed for diabetes, but the active ingredient in each is also used to produce a drug that is prescribed specifically for weight loss - Zepbound for Eli Lilly, and Wegovy for Novo Nordisk. The study found that patients taking Mounjaro lost more body weight than those who were taking Ozempic.
Novo Nordisk’s drugs’ active ingredient semaglutide has also been recently linked to a disorder that can cause blindness, causing an additional knock for the company. Eli Lilly’s drugs use tirzepatide, a different ingredient.
However, both companies have attracted recent criticism at the start of July after President Joe Biden and Senator Bernie Sanders said their prices for patients were “unconscionably high”. Stocks in both companies initially fell as a result.
How hot is this investment opportunity? 🔥🔥🔥
Eli Lilly stock has gone up 12.57% in a week - but has started to fall again. Analysts currently estimate that over the next 12 months, the stock will fall 2.92%. This could be partly that they previously saw the stock as being valued correctly - they might say that the recent boost it received actually took it into ‘overvalued’ territory.
The stock is currently closer to a ‘Strong Buy’ than it is to a ‘Buy’ according to analysts.
In the pipeline, the pharma company is working on a new drug similar to semaglutide and tirzepatide called retatrutide. The difference with retatrutide is that where tirzepatide acts on two different hormones in the body to produce its effects, retatrutride will act on three.
Perhaps the biggest impact on Eli Lilly’s stock has come from its new Alzheimer's drug, donanemab, which was approved by the US Food and Drug Administration in July this year. It will be available to patients under the name Kisunla.
An estimate from Goldman Sachs last October said weight loss drugs could become a US$100 billion market by 2030, so it’s likely that Eli Lilly will see profits grow on sales of these drugs.
Diabetes innovator: 💊
Eli Lilly produced the first commercially available insulin on the mass market back in 1923. This American company was founded way back in 1876 and since then has developed nearly 100 medicines. It has 42,000 employees around the world. Earlier this year, Eli Lilly entered a partnership with Amazon to deliver certain medications to patients' houses.
Which neme?: 🔍
‘Largest US Stocks’, ‘Pharma’, ‘Copy a $10Trn Asset Manager’, ‘Record Setters So Far In 2024’, ‘Future Tech: World Changing Ideas’, ‘Dividend Deadlines’
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