Eli Lilly (LLY) has outperformed Novo Nordisk (NVO) in the competitive obesity drug market, particularly following the clinical success of its weight loss drug, Zepbound, which demonstrated a mean weight loss of 20.2% compared to Novo’s Wegovy at 13.7%. Analysts highlight that while both companies are poised to benefit from the expanding obesity treatment sector, Eli Lilly’s diverse pipeline and recent advancements position it as the stronger contender.
Eli Lilly’s upcoming oral GLP-1, orforglipron, is set to launch in Q2 and targets both weight loss and diabetes, enhancing its competitive edge. In contrast, Novo Nordisk’s recent approvals, including an oral version of Wegovy, may not be enough to reclaim market leadership, especially given Eli Lilly’s promising triple agonist, retatrutide, which achieved a remarkable 28.7% mean weight loss in trials.
Investors should note that while Novo Nordisk appears undervalued at a forward P/E of 10.9 compared to Eli Lilly’s 26.6, the latter’s robust portfolio and financial performance make it the more attractive investment in the obesity drug space, despite its higher valuation.
Source: fool.com