Large Drugmakers Show Enthusiasm To Embrace $100B Obesity Market, Despite Novo And Lilly's Dominance
Portfolio Pulse from Vandana Singh
Pharmaceutical giants Amgen Inc (AMGN) and Pfizer Inc (PFE) are actively seeking entry into the $100B obesity market, aiming to challenge the dominance of Novo Nordisk (NVO) and Eli Lilly (LLY). Amgen is advancing its experimental obesity drug, MariTide, in Phase 2 trials and developing AMG 786, with data expected in late 2024 and 1H 2024, respectively. Pfizer's CEO confirmed their commitment to the obesity sector. Other companies like Merck (MRK) and Altimmune (ALT) are also developing similar treatments, while Bayer (BAYRY, BAYZF) is open to partnerships to navigate the market. These drugs are being evaluated for additional health benefits beyond weight loss.
January 11, 2024 | 4:40 pm
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NEGATIVE IMPACT
Eli Lilly, with its obesity drug Zepbound, could see increased competition as other pharmaceutical companies develop and introduce new treatments.
As companies like Amgen and Pfizer make strides in the obesity market, Eli Lilly's position could be challenged, potentially leading to a negative short-term impact on LLY's stock.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Novo Nordisk currently leads the obesity market with drugs like Wegovy, but faces potential competition from companies like Amgen and Pfizer.
The entry of new competitors like Amgen and Pfizer into the obesity market could threaten Novo Nordisk's current dominance, potentially leading to a negative short-term impact on NVO's stock.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70
NEUTRAL IMPACT
Altimmune is among the companies developing obesity treatments, which could influence investor sentiment and the company's stock performance.
Altimmune's role in creating obesity drugs may have a neutral short-term impact on ALT's stock, as the outcome of their development efforts is still uncertain.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Bayer AG is open to partnerships in the obesity market, which could lead to strategic collaborations and impact its stock.
Bayer's interest in partnerships for the obesity market could have a neutral short-term impact on BAYRY's stock, as the specifics of such collaborations are not yet known.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
Bayer AG's openness to partnerships in the obesity market could affect BAYZF's stock, depending on the nature and success of these potential collaborations.
Bayer's willingness to explore partnerships in the obesity market could have a neutral short-term impact on BAYZF's stock, as it is contingent on the development of such alliances.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
Merck is also developing drugs for the obesity market, which could impact its stock depending on the progress and success of these drugs.
Merck's involvement in developing obesity treatments could have a neutral short-term impact on MRK's stock as the market awaits further developments and results from trials.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Amgen is developing an obesity drug, MariTide, in Phase 2 trials and AMG 786 in Phase 1, aiming for a competitive edge with fewer side effects and less frequent dosing.
Amgen's active development of obesity drugs and strategic positioning to offer products with fewer side effects and less frequent dosing could potentially capture market share from current leaders, likely leading to a positive short-term impact on AMGN's stock.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Pfizer's CEO Albert Bourla has confirmed the company's commitment to the obesity market, indicating strategic interest and potential future investments.
Pfizer's expressed commitment to the obesity market suggests that the company may be planning to invest in or develop new treatments, which could have a positive short-term impact on PFE's stock as investors anticipate future growth.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80