The Eli Lilly and Novo Nordisk logos.
Mike Blake | Tom Little | Reuters
The diverging paths of two GLP-1 drugmakers were on full display this week.
Both Eli Lilly and Novo Nordisk beat second-quarter estimates and raised their full-year outlooks. But while investors cheered Lilly’s results, sending shares higher on Wednesday, they punished Novo a day earlier – underscoring a growing divide in Wall Street’s confidence in the two obesity drug leaders.
As Lilly continues to exceed expectations and widen its edge in the obesity drug space, Novo is still racing to win back market share, restore investor confidence in its pipeline and chart a clear path toward long-term growth.
“While Novo raised guidance (as expected), the pipeline and path to sustainable growth remain less clear,” BMO Capital Markets analyst Evan Seigerman said in a research note on Wednesday.
Eli Lilly’s stock has comfortably outperformed…
