Better Buy: Novo Nordisk vs. AstraZeneca

Pharmaceutical Industry Overview - Novo Nordisk and AstraZeneca are among the largest companies in the pharmaceutical industry, both delivering strong financial results in 2024 despite stock price declines [1] - AstraZeneca's shares are down 2% over the trailing-12-month period, while Novo Nordisk's shares are down 14% [1] Novo Nordisk Analysis - Novo Nordisk has a 33.9% share of the diabetes care market as of August 2024, up from 33.3% a year prior [3] - The company holds a 55.6% share of the GLP-1 drug space, compared to 54.4% in August 2023 [3] - Novo Nordisk's GLP-1 drugs Wegovy and Ozempic have driven rapid financial growth [3] - The weight loss market is projected to grow rapidly, with Novo Nordisk having an attractive pipeline in this field [4] - CagriSema, a weight loss drug candidate, showed 22.7% average weight loss in a 68-week study, outperforming Wegovy and Eli Lilly's Zepbound [5] - Novo Nordisk has promising candidates in rare diseases and neurological conditions like Alzheimer's and Parkinson's [6] AstraZeneca Analysis - AstraZeneca has a diversified pipeline spanning oncology, rare diseases, cardiovascular, renal, metabolism, respiratory, immunology, and vaccine therapies [8] - The company has 199 programs in its pipeline, including several promising candidates in the weight loss area [10] - AstraZeneca faces challenges in China due to an insurance fraud investigation and the arrest of its China president, Leon Wang [10][11] - Despite higher quarterly revenue, AstraZeneca's earnings per share are lower [12] Comparative Analysis - Novo Nordisk's revenue growth is expected to outpace AstraZeneca's in the short to mid-term due to its strong GLP-1 medicines and AstraZeneca's potential sales decline in China [14] - Novo Nordisk's recent issues are less damaging to its prospects compared to AstraZeneca's challenges [14]