65% Profit On Eli Lilly — 20% Reduction In Heart Attacks And Strokes With Weight Loss Drug — Raising The Target
Portfolio Pulse from The Arora Report
Novo Nordisk's weight loss drug, semaglutide, has shown a 20% reduction in major adverse cardiovascular events in a large scale study. This has positive implications for Eli Lilly's similar weight loss drug, Mounjaro. However, the prospect of insurers needing to cover these expensive drugs has led to a fall in stocks of health insurers like UnitedHealth Group, Cigna Group, and CVS Health Corp. Eli Lilly has reported strong earnings and raised its FY23 guidance. The company also has a promising Alzheimer's drug in the pipeline.
August 09, 2023 | 3:10 pm
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NEGATIVE IMPACT
Cigna Group's stock has fallen on the prospect of insurers needing to cover expensive weight loss drugs.
The prospect of insurers needing to cover expensive weight loss drugs could lead to increased costs for Cigna Group, negatively impacting its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
CVS Health Corp's stock has fallen on the prospect of insurers needing to cover expensive weight loss drugs.
The prospect of insurers needing to cover expensive weight loss drugs could lead to increased costs for CVS Health Corp, negatively impacting its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
UnitedHealth Group's stock has fallen on the prospect of insurers needing to cover expensive weight loss drugs.
The prospect of insurers needing to cover expensive weight loss drugs could lead to increased costs for UnitedHealth Group, negatively impacting its stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Eli Lilly's similar weight loss drug could benefit from the positive results of Novo Nordisk's study. The company has also reported strong earnings and raised its FY23 guidance.
The positive results from Novo Nordisk's study could boost Eli Lilly's similar drug. The company's strong earnings and raised guidance also indicate a positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Novo Nordisk's weight loss drug has shown positive results in a large scale study, potentially boosting the company's reputation and sales.
The positive results from the study could lead to increased sales and reputation for Novo Nordisk.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100