When you consider a prime weight reduction drug, likelihood is that Ozempic is the title that first involves thoughts. Although it’s accredited for diabetes (Wegovy is the equal model, which is accredited for weight reduction), many individuals have been utilizing it for years to shed pounds, and it has been extremely efficient in doing that. The success of Ozempic and Wegovy has helped the corporate behind the merchandise, Novo Nordisk (NVO 0.04%), change into some of the helpful healthcare shares on the earth.
But in an more and more aggressive marketplace for weight reduction medicine, these will not be the one choices for folks seeking to shed pounds. A current examine discovered that it might not be Ozempic or Wegovy that is the perfect weight reduction drug. Instead, that would come from Novo Nordisk’s longtime rival, Eli Lilly (LLY -0.32%).
Zepbound outperforms in head-to-head examine
Companies will carry out scientific trials of medicine, however they are not probably going to be straight comparable. The affected person inhabitants could also be barely completely different and the time interval might not be the identical, and so it may be tough to definitively say that one drug is simpler than one other — except you are speaking a few head-to-head examine.
Eli Lilly’s weight reduction drug, Zepbound, was not too long ago concerned in a head-to-head trial in opposition to Wegovy, and the outcomes indicated that the previous is the clear winner in serving to folks shed pounds.
In a 72-week trial, Zepbound helped folks lose simply over 20% of their physique weight, on common. Patients taking Wegovy, nonetheless, misplaced just a little beneath 14% of their physique weight throughout the identical timeframe. And there was additionally a better proportion of people that achieved important weight reduction with Eli Lilly’s drug. More than 31% of people that took Zepbound misplaced 1 / 4 of their physique weight or extra, versus 16% with Wegovy.
While this comparability concerned Wegovy and never Ozempic particularly, with each merchandise sharing the identical lively ingredient, semaglutide, it successfully proves that Zepbound is a way more efficient weight reduction choice than each Wegovy and Ozempic.
What does this imply for traders?
While these trial outcomes are nice information for Eli Lilly, that does not imply that Novo Nordisk’s inventory is in hassle. After all, there are shortages of weight reduction medicine, and there is room for greater than only one drug. According to Goldman Sachs, the whole marketplace for anti-obesity medicine might prime $100 billion by 2030.
Another issue to think about is how nicely folks react to those therapies. While Zepbound could also be simpler in serving to folks shed pounds, it might not be the popular choice if somebody encounters extra unwanted effects with the drug, or they merely have a neater time taking Wegovy. There’s no one-size-fits-all drug for folks seeking to shed pounds.
The examine might, nonetheless, assist Zepbound change into extra distinguished and well-known amongst sufferers. And with medical doctors having a transparent head-to-head examine to depend on, they might be extra prone to prescribe it for sufferers who want an aggressive weight reduction choice.
Both of those shares can nonetheless make for good buys
Eli Lilly and Novo Nordisk are two extremely profitable and worthwhile corporations to put money into. But traders additionally should not ignore valuation. Today, Eli Lilly inventory trades at a price-to-earnings ratio of 84, whereas traders solely must pay a a number of of 36 occasions earnings for Novo Nordisk.
The higher growth stock for traders could also be Eli Lilly attributable to Zepbound’s success, however when you’re on the lookout for a extra fairly priced choice, then Novo Nordisk should still be price including to your portfolio.
David Jagielski has no place in any of the shares talked about. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
