Biotech
Friday, September 6th, 2024 3:43 pm EDT
Key Points
- Eli Lilly’s Market Value Surge: Eli Lilly is poised to become the first healthcare company to surpass a $1 trillion market value, driven by the high demand for its weight loss drug Zepbound and diabetes medication Mounjaro. These incretin drugs, which help regulate appetite and blood sugar, now contribute nearly 40% of the company’s total sales. Eli Lilly’s stock has surged over 60% this year, bringing its market value close to $900 billion, with further growth anticipated due to potential regulatory approvals and positive trial results.
- Competitive Landscape and Challenges: Eli Lilly is a leading player in the weight loss drug market, projected to reach $150 billion by the end of the decade. It is currently outperforming its main rival, Novo Nordisk, which faces manufacturing challenges and missed sales expectations for its drugs Wegovy and Ozempic due to pricing pressures. Eli Lilly’s advancements, including the potential additional health benefits of Zepbound, could further solidify its market position.
- New Health-Tech Innovations: Abbott Laboratories has introduced Lingo, an over-the-counter continuous glucose monitor designed for non-insulin users to help manage glucose levels and understand their body’s responses to various factors. This device follows Dexcom’s launch of a similar product, Stelo. Both devices represent a growing trend in consumer-friendly health tech, with Abbott’s Lingo featuring a unique “Lingo Count” metric to track glucose spikes and provide educational tools for users.
Earlier this month, Berkshire Hathaway reached a historic milestone by surpassing a $1 trillion market value, becoming the first non-tech company in the U.S. to achieve this feat. Eli Lilly, a major pharmaceutical company, is poised to follow in its footsteps and become the first healthcare company to join this elite club. Eli Lilly’s potential ascent to this milestone is driven by the soaring success of its injectable weight loss drug Zepbound and diabetes medication Mounjaro, both of which are incretin drugs designed to mimic gut hormones that suppress appetite and regulate blood sugar. These two drugs now contribute nearly 40% of Eli Lilly’s total sales, reflecting their significant market impact.
Eli Lilly is positioned as a leading player in the burgeoning weight loss drug market, which is projected to be worth $150 billion by the end of the decade. The company is making notable progress in expanding its drug supply, potentially outpacing its main competitor, Novo Nordisk, which has faced challenges such as missed sales expectations and pricing pressures in the U.S. Novo Nordisk is also investing heavily in manufacturing to keep up, but Eli Lilly’s advancements and additional health benefits of its drugs, such as Zepbound’s potential to treat obesity-related conditions, are bolstering investor confidence.
Eli Lilly’s stock has surged over 60% this year, bringing its market value close to $900 billion. The company’s recent second-quarter results exceeded Wall Street’s expectations, causing a nearly 10% increase in its stock price. With further potential boosts from upcoming data and regulatory approvals—such as the expected FDA decision on Zepbound for sleep apnea and possible trial results comparing Zepbound with Novo Nordisk’s Wegovy—Eli Lilly could soon cross the $1 trillion market value threshold.
In related health-tech news, Abbott Laboratories has launched its first over-the-counter continuous glucose monitor, Lingo, which is designed for non-insulin users to manage their glucose levels and understand their body’s responses to various factors. This follows the release of Dexcom’s Stelo, another over-the-counter glucose monitor. Abbott’s Lingo features a “Lingo Count” metric to help users track glucose spikes, and it is priced affordably with options for purchasing different quantities. The introduction of these monitors reflects a growing trend in accessible health monitoring technologies.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/09/05/healthy-returns-eli-lilly-could-become-the-first-1-trillion-healthcare-stock.html
