Pfizer, Novo Nordisk and Eli Lilly Battle to Create the World’s First Daily Weight Loss Pill

Key takeaways

• Pfizer shares dropped 5% when it announced it had to drop clinical trials for its once-daily obesity pill after safety concerns
• Meanwhile, Eli Lilly is forging ahead with promising weight loss injectables and pills, with the stock climbing
• Novo Nordisk stock has gained 13% after rampant success of Wegovy and Ozempic

When the celebrity gossip columns started talking about a new weight loss drug, nobody expected it to launch a new billion-dollar industry almost overnight — but that’s exactly what happened with Ozempic, the diabetes medicine that could also battle the obesity epidemic. Now Big Pharma is racing to develop their own versions, with bumps in the road for Pfizer.

The healthcare industry is one of the slow-and-steady sectors that can feature as part of Q.ai’s Value Vault Kit, which uses AI to find companies with relatively low valuations and strong financials by scanning masses of data. It then dynamically adjusts your investment in the Kit’s holdings to help ensure you’re making the most of every last cent.

Download Q.ai today for access to AI-powered investment strategies.

What’s happening with Pfizer and Novo Nordisk?

The race to develop the first oral weight loss drug has intensified in recent weeks

Pfizer, one of the hero companies of the pandemic, has been forced to scrap trials of its daily oral weight loss pill after early studies showed elevated liver enzyme levels in patients.

It’s continuing with its twice-daily treatment option, with CEO Albert Bourla previously commenting that an obesity pill could be a $10 billion dollar yearly revenue stream for the company.

The news comes as competitor Eli Lilly announced last week that its once-daily obesity pill trials had seen overweight and obese patients lose up to 14.7% of their total body weight. On Monday, it said its injectible drug had even more effective results, with patients losing 24% of their body weight.

Novo Nordisk, the Danish pharmaceutical giant which produces the weekly injection obesity and diabetes drugs Wegovy and Ozempic, has made progress with its high-dose oral version of the medicine.

Late-stage trials found the oral version of semaglutide, the active ingredient to help with weight loss, helped overweight or obese adults lose up to 15% of their body weight. Novo is said to be seeking U.S. and European approval.

What was the market reaction?

Pfizer shares fell 5% at the news, adding to an already bad year for the stock’s performance, which has tanked 28% in 2023 as the stock struggles to gain ground after its stellar covid vaccine strategy carried the stock.

In comparison, Novo Nordisk has gained just shy of 13% this year to hit $154.74 as its semaglutide drugs have become the global standard in weight loss treatments. Without any competitors yet, it was inevitable the company would enjoy a good year.

As for Eli Lilly, the stock got a boost at its latest obesity drug breakthrough, climbing 1.8% at last week’s oral pill news and 1% today with the injectible announcement. The pharmaceutical titan has seen 25.4% added to the share price in 2023, boosted by new cancer and diabetes drugs adding to its solid core product portfolio.

The bottom line

The race to develop weight loss drugs and capitalize on the same success Novo Nordisk has already enjoyed is a top priority for the rest of Big Pharma. Given the revenue potential, investors will watch the competition keenly to see who arrives at the finish line for the first weight loss pill.

If you want to diversify your portfolio across multiple sectors and assets, the healthcare industry is never a bad one to consider. That’s why it can form part of Q.ai’s Value Vault Kit, which prioritizes quality over quantity. The secret sauce is an AI algorithm to take on the onerous research and predict where the upside might be so that you can invest without the upfront work.

Download Q.ai today for access to AI-powered investment strategies.