Novo obesity strategy as Eli Lilly extends lead

Every time Novo urges investors to look ahead, Eli Lilly gives them another reason to look back at its widening lead over the Danish drugmaker. 

Novo this week laid out an ambitious strategy to reignite growth beyond its top-selling Wegovy and Ozempic injections, which face patent expirations in key markets in the early 2030s. At its Capital Markets Day on Monday, the company promised a pipeline of potential blockbuster products, including drugs that would diversify from its core area of obesity and diabetes. 

But Wall Street so far isn’t convinced by Novo’s road map. Investors pummeled the drugmaker’s stock, underwhelmed by growth targets that matched industry averages rather than outpacing them. They were also skeptical of the lack of clarity around a near-term turnaround plan.

At the same time, Lilly continues to chip away at its rival’s market share —…