Can't stop the medicine?
Research Reveals Impact of Eli Lilly's Weight Loss Drug Rebound:
A study indicates that a year after discontinuing Eli Lilly's weight loss drug Zepbound, participants who had previously taken it for eight months experienced a slow rebound in weight, with half of the lost weight regained.
As a result, Eli Lilly's stock price took a dive at the opening of the U.S. stock market, experiencing an overall drop of 3.8% on that day, hitting a new low of $574.91. Novo Nordisk's stock price also followed suit.
A study indicates that a year after discontinuing Eli Lilly's weight loss drug Zepbound, participants who had previously taken it for eight months experienced a slow rebound in weight, with half of the lost weight regained.
As a result, Eli Lilly's stock price took a dive at the opening of the U.S. stock market, experiencing an overall drop of 3.8% on that day, hitting a new low of $574.91. Novo Nordisk's stock price also followed suit.
Stock Price Gains May Drag Down Next Year's Performance:
Due to the popularity of weight loss drugs this year, both Eli Lilly and its competitor Novo Nordisk saw their stock prices rise by over 40%, with Eli Lilly surging nearly 60%, making it the first pharmaceutical company to reach a market cap of $500 billion.
Despite a difference in market cap of about $93 billion, analysts suggest that both companies might underperform the broader market next year, predicting that these two winners could turn into losers. Analysts' pessimism towards them exceeds that for tech giants.
Due to the popularity of weight loss drugs this year, both Eli Lilly and its competitor Novo Nordisk saw their stock prices rise by over 40%, with Eli Lilly surging nearly 60%, making it the first pharmaceutical company to reach a market cap of $500 billion.
Despite a difference in market cap of about $93 billion, analysts suggest that both companies might underperform the broader market next year, predicting that these two winners could turn into losers. Analysts' pessimism towards them exceeds that for tech giants.
Challenges Ahead and Predictions of Decline:
Out of 518 analysts surveyed, 34% believe that Eli Lilly and Novo Nordisk might lose their lead next year, surpassing the level of pessimism towards tech leaders.
Last week, Jefferies analysts highlighted Novo Nordisk as one of the four European stocks expected to perform poorly in 2024, stating that there are limited key factors that could drive its future growth, and the potential value of early-stage research projects might already be reflected in the stock price.
Out of 518 analysts surveyed, 34% believe that Eli Lilly and Novo Nordisk might lose their lead next year, surpassing the level of pessimism towards tech leaders.
Last week, Jefferies analysts highlighted Novo Nordisk as one of the four European stocks expected to perform poorly in 2024, stating that there are limited key factors that could drive its future growth, and the potential value of early-stage research projects might already be reflected in the stock price.
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