Pharmaceutical giants Eli Lilly and Novo Nordisk both soared to all-time highs today. Let’s see what drove them higher. 👀
Firstly, Novo Nordisk’s closely watched “SELECT” trial results exceeded analyst expectations. They were so good the company’s executive vice president of development said the results show its obesity drug “has the potential to change how obesity is regarded and treated.”
The late-stage trial showed obesity drug Wegovy reduced the risk of major cardiovascular events such as heart attacks or strokes by 20%. Analysts had expected a risk reduction between 15% and 17%. As a result, the strong showing helped fuel optimism that the drug’s image can move beyond a “vanity drug” and something that can actually reduce the risk of major diseases. 😮
Executives expect to file for regulatory approvals of a label indication expansion for Wegovy in the U.S. and European Union this year. $NVO shares jumped 17% on the news to fresh all-time highs. 👍
Next up, Eli Lilly shares had their best day in more than two decades after the drug giant’s second-quarter earnings beat expectations. Adjusted earnings per share of $2.11 on revenues of $8.31 billion both topped analyst estimates by a wide margin. 💊
Additionally, favorable trial results for rival Novo Nordisk’s Wegovy helped boost prospects for its own weight loss drug, Mounjaro. President of Lilly Diabetes said, “We’re confidence in the experiences that people who use Mounjaro for Type 2 diabetes have, and we’re excited to see what that will be for people in chronic weight management when and if we get above by the FDA.”
$LLY shares jumped 15% on the optimism and made new all-time highs. 🔺
And to leave off with a crazy chart, here are both stocks’ total returns as public companies. We’ll see if this strength spreads to the rest of the industry as the $XPH ETF hits six-month highs. 📈
