Lilly and Novo Nordisk Stocksawawed by Wall Street star-news.press/wp

ELI Lilly and Novo Nordisk, the dominant players in the dilapidated market of GLP-1, have the most fragile relationship with investors, who seem ready to distort them at the slightest hint of bad news. This week, the two companies were unable to win a loss, and their stock prices revolve around the second quarter health results and promising pipeline from new drugs.

Increased competition from low -brand companies, high expectations for any future weight loss medications, and the continuous increased high sugar to demand patients, make investors be easily dispersed if their expectations are not fulfilled.

On Wednesday, Novo Nordisk, the leading GLP-1 drug maker in Wegovy and OzemPic, the share price decreased by 3.9 % despite reporting a 18 % increase in second-quarter sales on an annual basis to 24 billion dollars, which is slightly higher than analysts’ expectations.

The share of the Danish company has already decreased more than 20 % in the previous week when it dramatically reduced its sales expectations for the full year, from 10 % to 24 % to 8 % to 15 %. The company also announced this week that it was pulling the plug on many new weight loss drugs. By the end of Wednesday, the stock decreased by almost 50 % for this year.

Novo Nordesk has long been a favorite in Wall Street after winning the approval of the market four years ago for Wagofi, which sparked a global rush to this new category of weight loss. Just 12 months ago, Novo Nordisk was the largest European company depending on the market value. Now ranks 11th.

On Thursday, a night role was suffering from investor fluctuations. The company, which received the market from Novo Nordisk this year through GLP-1 Zepbound and Mounjaro, has announced the strong second quarter, with sales increased by more than 38 % to 15.6 billion dollars.

But Lily also informed that the GLP-1 experimental pill or the Luor Glipron resulted in 11.2 % weight loss in adults with obesity in a clinical trial, slightly lower than the injection-wicked Wegovy in Novo. Lilly shares have decreased by approximately 15 % on the news, putting them at a pace for the most severe decrease in one day within 25 years.

Dr. Daniel Skoverski, the chief scientific official in Lily, insisted that the results of the trial were a good thing, saying in the morning profits, “This is as good as it is for unilateral therapy GLP – 1 here in the small molecule that was one day (space).” But it was not good enough for the Wall Street analysts, who expected the average weight loss by 14 % to 15 %.

“But when it comes to commercial competitiveness, we believe that price concessions are higher than expected,” said Deutsche Bank.

William Blair’s analysts were more negative, saying that the data provides “once in blue” for other biological pharmaceutical companies to jump to the GLP-1 space. “From the perspective of the stocks, we believe that Miss Eli Lili is rare from the unbeatable obesity of obesity that can create an opening for young competitors.”

On the other hand, Novo Nordisk has returned, as it rose about 7 % on Lilly News. The company’s oral version of Wegovy showed a 13 % average weight loss in a clinical trial, and novo nordisk I submitted for the approval of the FDA From birth control pills in May.

But as William Blair analysts noticed, there are many competitors who are waiting to get rid of both Novo Nordisk and Lilly. About 39 companies around the world are developing oral GLP-1 drugs in the form of birth control pills. Treatment structure It is expected that the results of the mid-stage experience of the promising GLP-1 will be reported in the fourth quarter.

Then there are vehicles, pharmacies, and medicine companies from remoteness, which are dedicated copies of the GLP-1 drugs, usually at a much lower price than commercial names. They were allowed to enter space in 2022 due to the lack of versions approved by FDA, but in March the FDA announced the shortage and ordered vehicles to leave.

The compounds wander this arrangement by providing “custom” versions of drugs that have been formulated for each patient separately, which are located in a legal gray area. Novo Nordsk said that more than a million people are still using the GLP-1 vehicle, eating its share in the market, and their blame for the company’s low predictions.

On Wednesday Novo Nordsek 14 new lawsuits were filed Against the compounds, she said 132 complaints so far in federal courts in 40 states. Lily also filed a lawsuit against many complexes.

It is easy to see why many companies are eager to challenge market leaders. Morgan Stanley Research expects that the global market will reach $ 150 billion in sales by 2035, from about $ 15 billion today. Take an estimated 12 % of American adults GLP-1 and 6 % are currently using it.

In addition, there is increasing evidence that medications may be effective for more weight loss. In 2024, Wegovy was approved to prevent heart attacks and other cardiovascular events in people with heart disease and obesity, and Zepbound became the first approved drug to treat sleep apnea.

Modern reports indicate that medications may be effective against kidney disease, uterine fibroids, symptoms of Alzheimer’s, menopause, and substance use disorders. In May, a team of researchers a Ticket Explain that medications may reduce the risk of about 14 cancer -related cancers.