On Monday, BMO Capital Markets highlighted a positive outlook for Eli Lilly and Company (NYSE:LLY)'s product sales leading up to the holiday season. Analysts observed a notable uptick in total and new prescriptions for Lilly's diabetes and obesity treatments, Mounjaro and Zepbound, which saw increases of 4.5% and 5.7% respectively in total prescriptions (TRx).
Eli Lilly's Mounjaro and Zepbound are part of a class of drugs known as GLP-1 receptor agonists, which are used to treat conditions like diabetes and obesity. The analyst firm has modeled substantial revenues for these products, projecting $17.7 billion for tirzepatide, the active ingredient in Mounjaro and Zepbound, for the fiscal year 2024.
Similarly, for Novo Nordisk (NYSE:NVO)'s semaglutide-based products, Ozempic and Wegovy, BMO Capital anticipates revenues to reach $28.4 billion in the same period. The comparison of growth rates between the two companies' products could reflect competitive dynamics in the GLP-1 market segment.
The increase in prescription rates ahead of the U.S. Thanksgiving holiday suggests that patients are actively seeking treatment with these medications. Eli Lilly's stronger growth in prescriptions may position the company favorably as it heads into the final month of the quarter and the year.
In other recent news, Novo Nordisk has been the focus of several analyst evaluations and significant developments. Deutsche Bank (ETR:DBKGn) maintained a Buy rating on Novo Nordisk's shares, setting a price target of DKK1,000.00 based on recent data. The report highlighted a positive growth trajectory for Novo Nordisk's products Ozempic and Wegovy, and anticipated growth for Rybelsus and the Tresiba/Levemir/Victoza group.
The pharmaceutical giant is also expected to benefit from the proposed $16.5 billion acquisition of Catalent (NYSE:CTLT) by its parent company, Novo Holdings, according to BMO Capital. The acquisition will significantly enhance Novo Nordisk's global fill-finish network, a critical step for the company's rapid expansion. However, U.S. regulators' approval remains the final hurdle for the deal.
JPMorgan also maintained an Overweight rating on Novo Nordisk's stock, anticipating a 25% weight loss from the upcoming CagriSema REDEFINE 1 obesity trial data. The firm suggests that CagriSema could emerge as a leading product in the obesity treatment space, based on the performance of its components, cagrilintide and semaglutide.
Despite a reduction in the price target following the review of the company's third-quarter performance, Deutsche Bank maintained a Buy rating on Novo Nordisk. The company reported a 24% increase in sales and a 22% rise in operating profit in Q3 2024, with its GLP-1 treatments for diabetes now serving over 43 million patients.
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