Eli Lilly investors shouldn’t sweat rival Novo Nordisk having the first obesity pill on sale
Club holding Lilly stock slumped 1% Tuesday while Novo Nordisk shares jumped nearly 9%.
TL;DR
- Jim Cramer believes selling Eli Lilly stock after Novo Nordisk's FDA approval for an oral GLP-1 weight-loss pill is a "big mistake."
- Eli Lilly's own oral weight-loss drug, orforglipron, is expected to receive FDA approval soon and may have advantages over Novo Nordisk's pill.
- Novo Nordisk plans to launch its oral Wegovy in the U.S. in early January at a starting dose of $149 per month.
- Novo Nordisk CEO Mike Doustdar believes the oral pill will expand the weight-loss drug market, attracting those averse to injections.
- Lilly previously secured a leadership position in the injectable GLP-1 market despite Novo Nordisk launching first.
- Lilly's orforglipron will not have food and water restrictions, unlike Novo Nordisk's Wegovy pill.
- Both companies have increased supply to avoid shortages experienced with injectable versions.
- Eli Lilly reached a $1 trillion market capitalization in November and its shares are up 40% year-to-date.
- Novo Nordisk shares have declined roughly 40% this year.