Novo Nordisk Shares Surge, Closing Gap with Eli Lilly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 39 minutes ago
0mins
Source: seekingalpha
- Market Share Recovery: Novo Nordisk (NVO) has seen its stock rise 22% over the past three months, significantly outpacing Eli Lilly's (LLY) approximately 5% increase, indicating a strengthening competitive position in the GLP-1 market, particularly following the launch of the oral weight loss drug Wegovy.
- Prescription Data Comparison: According to IQVIA data, Wegovy amassed around 18,410 U.S. prescriptions in its first week in January, while Eli Lilly's Foundayo only garnered 3,707 prescriptions last month, highlighting Novo's clear first-mover advantage in the market.
- Analyst Rating Support: Analysts from ALLKA Research reiterated a
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 45.510
Low
42.00
Averages
54.67
High
70.00
Current: 45.510
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Novo Nordisk Shares Surge, Closing Gap with Eli Lilly
- Market Share Recovery: Novo Nordisk (NVO) has seen its stock rise 22% over the past three months, significantly outpacing Eli Lilly's (LLY) approximately 5% increase, indicating a strengthening competitive position in the GLP-1 market, particularly following the launch of the oral weight loss drug Wegovy.
- Prescription Data Comparison: According to IQVIA data, Wegovy amassed around 18,410 U.S. prescriptions in its first week in January, while Eli Lilly's Foundayo only garnered 3,707 prescriptions last month, highlighting Novo's clear first-mover advantage in the market.
- Analyst Rating Support: Analysts from ALLKA Research reiterated a
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
Eli Lilly Faces Intensifying Competition in GLP-1 Drug Market
- Intense Market Competition: Eli Lilly leads the GLP-1 drug market, yet its newly launched oral medication may face acceptance challenges compared to Novo Nordisk's more effective pill, highlighting the fierce competition in the industry.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from two injectable GLP-1 drugs, Mounjaro and Zepbound, indicating the critical importance of GLP-1 drugs to the company's business, with future market performance directly impacting its financial health.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, shows promising early trial results, with some patients losing over 30% of their weight, potentially providing new growth momentum for the company, although it is still in the testing phase.
- Valuation Analysis: With a price-to-earnings ratio of 37x, significantly above the pharma average of 24x, Eli Lilly's current valuation may seem high, but if the new GLP-1 drug meets expectations, it could lead to attractive growth opportunities for the company.
See More
Is It Time to Reload Your Underinvested Portfolio?
- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
See More
Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
See More
Eli Lilly's Stock Surpasses $1,000, Potential Split Ahead
- Market Share Leadership: Eli Lilly has captured a 60% share of the GLP-1 drug market in the U.S., surpassing rival Novo Nordisk, indicating strong performance in the obesity drug sector and expected revenue growth.
- Strong Stock Performance: Over the past three years, Lilly's stock has surged more than 160%, and despite a sluggish start to the year, it recently surpassed $1,000, reflecting investor confidence in its future growth prospects.
- Split Potential Analysis: The stock's rise above $1,000 may prompt the company to consider a stock split; although it has split its stock four times in the past, changes in management could influence future decisions.
- New Drug Driving Growth: The recent launch of Lilly's oral obesity drug Foundayo could serve as a new growth driver, and combined with existing products Mounjaro and Zepbound, sustained market demand may further elevate the stock price and trigger split discussions.
See More
Novo Nordisk Shares Surge, Closing Gap with Eli Lilly
- Market Share Recovery: Novo Nordisk (NVO) has seen its stock rise 22% over the past three months, significantly outpacing Eli Lilly's (LLY) approximately 5% increase, indicating a strengthening competitive position in the GLP-1 market, particularly following the launch of the oral weight loss drug Wegovy.
- Prescription Data Comparison: According to IQVIA data, Wegovy amassed around 18,410 U.S. prescriptions in its first week in January, while Eli Lilly's Foundayo only garnered 3,707 prescriptions last month, highlighting Novo's clear first-mover advantage in the market.
- Analyst Rating Support: Analysts from ALLKA Research reiterated a
See More
Eli Lilly's New Developments in GLP-1 Drugs
- Intensifying Market Competition: Eli Lilly's introduction of an oral GLP-1 drug may attract consumers, but it trails behind Novo Nordisk's more effective pill launched in 2026, potentially delaying market acceptance and impacting future revenues.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from its injectable GLP-1 drugs, Mounjaro and Zepbound, indicating that any loss in market share could significantly affect the company's financial health and growth prospects.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, is in development, with early trials showing some patients losing over 30% of their weight, comparable to bariatric surgery, which could provide a new growth avenue if successfully launched.
- Valuation Appeal: Although Eli Lilly's price-to-earnings ratio stands at 37, above the pharma average of 24, if Retatrutide meets expectations and drives growth, the current valuation may appear more attractive to investors, warranting close attention.
See More
Eli Lilly Faces Intensifying Competition in GLP-1 Drug Market
- Intense Market Competition: Eli Lilly leads the GLP-1 drug market, yet its newly launched oral medication may face acceptance challenges compared to Novo Nordisk's more effective pill, highlighting the fierce competition in the industry.
- High Revenue Dependency: Nearly 65% of Eli Lilly's revenue comes from two injectable GLP-1 drugs, Mounjaro and Zepbound, indicating the critical importance of GLP-1 drugs to the company's business, with future market performance directly impacting its financial health.
- Promising Drug Development: Eli Lilly's next-generation GLP-1 drug, Retatrutide, shows promising early trial results, with some patients losing over 30% of their weight, potentially providing new growth momentum for the company, although it is still in the testing phase.
- Valuation Analysis: With a price-to-earnings ratio of 37x, significantly above the pharma average of 24x, Eli Lilly's current valuation may seem high, but if the new GLP-1 drug meets expectations, it could lead to attractive growth opportunities for the company.
See More
Is It Time to Reload Your Underinvested Portfolio?
- Shopify Stock Fluctuations: Shopify's stock has dropped 40% since last October, currently valued at $154 billion; despite pressures from slowing sales growth and rising interest rates, its Q1 revenue growth rate of 34% highlights its significance in the future of e-commerce.
- Nice's Customer Service Technology: Nice Ltd, with a market cap of $5.4 billion, derives only 14% of its cloud revenue from AI, yet its Q1 recurring revenue grew 66% year-over-year, showcasing its strong performance and growth potential in the customer service market.
- Viking Therapeutics' Drug Development: Viking Therapeutics is conducting phase 3 trials for its GLP-1 weight-loss drug VK2735, currently valued at $3.8 billion; analysts unanimously rate its stock as a strong buy with a target price of $95.40, reflecting confidence in its market potential.
- Investor Focus on Emerging Stocks: Despite overall market volatility, investor interest in Shopify, Nice, and Viking indicates optimism towards these growth stocks, particularly in the long-term growth prospects within the e-commerce and health sectors.
See More
Analysis of Shopify's Stock Price Decline
- Shopify's Stock Decline: Shopify's shares have fallen 40% since October, driven by slowing sales growth, rising interest rates, and potential threats from AI, although these concerns may be overstated.
- Nice Ltd's Customer Service Edge: Nice Ltd's platform facilitates over 20 billion interactions annually, and while AI accounts for only 14% of its cloud revenue, its annualized revenue has reached $345 million, indicating strong growth potential.
- Viking Therapeutics' Market Potential: Viking Therapeutics' VK2735 is in phase 3 trials and could disrupt the $200 billion obesity drug market, with analysts setting a target price of $95.40, representing a 200% upside from current levels.
- Cautious Investor Sentiment: Despite stocks remaining above late-March lows, many investors are on the sidelines due to concerns about a market pullback, particularly in the current economic climate, which challenges confidence in reinvesting.
See More
Eli Lilly's Stock Surpasses $1,000, Potential Split Ahead
- Market Share Leadership: Eli Lilly has captured a 60% share of the GLP-1 drug market in the U.S., surpassing rival Novo Nordisk, indicating strong performance in the obesity drug sector and expected revenue growth.
- Strong Stock Performance: Over the past three years, Lilly's stock has surged more than 160%, and despite a sluggish start to the year, it recently surpassed $1,000, reflecting investor confidence in its future growth prospects.
- Split Potential Analysis: The stock's rise above $1,000 may prompt the company to consider a stock split; although it has split its stock four times in the past, changes in management could influence future decisions.
- New Drug Driving Growth: The recent launch of Lilly's oral obesity drug Foundayo could serve as a new growth driver, and combined with existing products Mounjaro and Zepbound, sustained market demand may further elevate the stock price and trigger split discussions.
See More
