🎁 $LLY & $NVO Hit All Time High, Buy High and Sell Higher?
1.Investors Joke That the Fatter We Get, the Higher $Novo-Nordisk A/S(NVO)$ & $Eli Lilly(LLY)$ Go🤣
On Monday trading, Weight loss drugs company $Novo-Nordisk A/S(NVO)$ & $Eli Lilly(LLY)$ hit all time high. As of post, $NVO has increased $184% since 2021, and now market value at $446.463B. $Eli Lilly(LLY)$’s current market is $565.362B with 3-year return over 257%，which surpass the return of $NVIDIA Corp(NVDA)$.
Do you dare to buy and sell higher? What are the prospects and valuations of the 2 stocks?
2. What Drives $Eli Lilly(LLY)$ & $Novo-Nordisk A/S(NVO)$ Price Surge?
Novo Nordisk, Eli Lilly show progress for oral GLP-1 treatments for obesity.
Last weekend at the American Diabetes Association (ADA) Scientific Sessions in San Diego, market leaders $Novo-Nordisk A/S(NVO)$ and $Eli Lilly(LLY)$ presented data that showed their investigative oral GLP-1 treatments are making progress.
A phase 3 study of Novo Nordisk’s high-dose oral semaglutide, OASIS 1, shows that obese patients averaged a weight loss of 15% after 68 weeks of treatment, with 34% seeing a 20% drop in their weight. The results are comparable to the weight reductions seen with Novo’s injected GLP-1 drugs.
Meanwhile, Eli Lilly has seen similar success for its GLP-1 diabetes answer Mounjaro, which has reported trial results that indicate it might provide more ability to trigger weight loss. The treatment generated sales of $980 million in the period, helping Lilly to a 28% revenue increase.
The potential advantages of a daily-pill version of popular GLP-1 drugs for Type 2 diabetes and obesity are obvious compared to the weekly injection routine most patients taking these drugs undergo.
Weight Loss Pill
After Novo Nordisk released trial data showing the heart benefits of obesity treatment Wegovy, J.P. Morgan has doubled its market projection for GLP-1 drugs to $71 billion by 2032.
Demand is so strong for Novo Nordisk’s obesity drugs that the only limitation on sales—in the short term—seems to be the company’s ability to produce them.
In 2030, Novo will have a chance to reach nearly half the market—a sales opportunity of some $33 billion—according to a recent report from analysts with J.P. Morgan. Analyst Richard Vosser has estimated that the global market will reach $71 billion by 2032, with Novo and Eli Lilly each accounting for 45% of its sales.
Further upgrades to the projection could come next year based on readouts from phase 3 trials evaluating Novo’s GLP-1 treatments against a variety of disorders including chronic kidney disease and nonalcoholic steatohepatitis, the analysts said.
With the demand for obesity drugs growing, JPM sees Novo’s 2023-26 revenue compound annual growth rate increasing from 14% to 22%.
In the second quarter, sales of Novo's GLP-1 diabetes drug Ozempic reached $3.2 billion, up from $2.1 billion in the same quarter a year ago,
Current Average Target Price for $Novo-Nordisk A/S(NVO)$ and $Eli Lilly(LLY)$ from TIPRANKs
Based on 1 Wall Street analysts offering 12 month price targets for $Novo-Nordisk A/S(NVO)$ in the last 3 months. The average price target is ― with a high forecast of ― and a low forecast of ―. The average price target represents a ― change from the last price of $199.54.
Based on 17 Wall Street analysts offering 12 month price targets for Eli Lilly & Co in the last 3 months. The average price target is $586.00 with a high forecast of $640.00 and a low forecast of $470.00. The average price target represents a -1.61% change from the last price of $595.56.
3. More Discussions on & $Eli Lilly(LLY)$ & $Novo-Nordisk A/S(NVO)$
Valuation Concerns:
$Eli Lilly(LLY)$ 's current price-to-earnings ratio (TTM) is 79.34, higher than the average data of 29.54.
$Novo-Nordisk A/S(NVO)$ 's current price-to-earnings ratio (TTM) is 45.1, higher than the average data of 29.54.
By Quality Stocks on AUG 30
Insider Sales Caution：
4. Question for Tigers
How do you like the $Eli Lilly(LLY)$ & $Novo-Nordisk A/S(NVO)$
Do you think they will ascend more? What’s your target price for each?
Any other stocks are shaping the same pattern?
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Novo Nordisk has, in recent years, posted record profits, paid hefty dividends, and repurchased shares consistently. This has resulted in the share price rising to historic highs, with the stock having outperformed the S&P 500 by more than 3x in the past 3 years. NVO has, however, become significantly overvalued, and investors may be wondering whether its time to head for the exits. NVO's obesity drug Wegovy could be highly successful, given the prevalence of obesity in the US and globally and the favorable economics of producing and marketing the drug. Despite current supply constraints, the company's growth potential is high due to the increasing global prevalence of obesity and type 2 diabetes and the expected production increase from a new plant in Clayton, North Carolina.
$Novo-Nordisk A/S(NVO)$