Take Your Ozempic: Why Late Entry Of Rival Weight-Loss Drugs Won't Floor Novo, Eli Shares
Portfolio Pulse from Neil Dennis
Eli Lilly (LLY) and Novo Nordisk (NVO) are expected to impress investors with their Q4 earnings, driven by the success of their diabetes treatments, which are also popular for weight loss. Eli Lilly is anticipated to report a 32.1% increase in EPS and a 21.4% rise in revenue. Novo Nordisk already beat earnings and revenue estimates. Despite potential competition from Pfizer (PFE) and AstraZeneca (AZN), the market for weight-loss drugs is expected to grow, with Goldman Sachs predicting a $100 billion market by 2030.
January 31, 2024 | 1:49 pm
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POSITIVE IMPACT
AstraZeneca has entered the weight-loss drug market through a licensing deal, which may have a moderate positive impact on its stock price.
AstraZeneca's strategic licensing deal to enter the weight-loss drug market could be seen as a positive development, potentially leading to a moderate increase in its stock price as the market evaluates the future revenue potential.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Eli Lilly is expected to report strong Q4 earnings with significant increases in EPS and revenue, driven by the success of its diabetes and weight-loss treatments.
The anticipated positive earnings report for Eli Lilly, with substantial growth in EPS and revenue, is likely to bolster investor confidence and could lead to a short-term uptick in the stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Novo Nordisk has already surpassed earnings and revenue estimates for Q4, which may continue to positively influence its stock price in the short term.
Having already beaten earnings and revenue estimates, Novo Nordisk's stock price is likely to maintain its positive momentum in the short term, reflecting the company's strong performance.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Pfizer is exploring the weight-loss treatment market but has faced setbacks, which may limit the short-term impact on its stock price.
Pfizer's difficulties in developing a weight-loss pill and the decision to not pursue acquisitions in this area suggest a neutral short-term impact on its stock price, as the market focuses on current earnings and existing products.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60