Novo Nordisk(NVO) ZACKS·2025-01-15 19:31Core Insights - Eli Lilly (LLY) lowered its sales guidance for full-year 2024, anticipating revenues of approximately 45.4-45.44 billion [2][3] - The company's stock fell nearly 7% following the announcement, attributed to slower sales growth of its tirzepatide products, with Mounjaro generating 1.9 billion, both missing consensus estimates [3][4] - Despite the disappointing results, LLY provided a positive outlook for 2025, projecting sales between 61 billion, indicating a potential growth of 32% compared to 2024 [5] Company Performance - LLY's fourth-quarter revenues are expected to be around 13.93 billion [2][3] - This marks the second consecutive quarter where LLY's results have disappointed investors, with management citing lower-than-expected channel inventory as a contributing factor [4] - The company is scheduled to report its fourth-quarter and full-year results on February 6, 2025 [4] Industry Impact - LLY's announcement negatively affected other obesity stocks, including Novo Nordisk (NVO), Viking Therapeutics (VKTX), and Amgen (AMGN), as investors questioned the industry's demand forecasting for obesity drugs [6] - NVO's stock fell 4%, while VKTX and AMGN saw declines of approximately 13% and 1%, respectively [7] - The obesity market is currently dominated by LLY and NVO, with Zepbound showing superior weight loss results compared to NVO's Wegovy in clinical studies [8][9] Market Dynamics - The obesity market is projected to reach $100 billion in the U.S. by 2030, highlighting its commercial potential [11] - Both LLY and NVO are focusing on improving patient comfort and developing oral formulations of obesity drugs [12] - Viking Therapeutics has shown promise in the obesity space, with recent data indicating significant weight loss in early-stage studies [13]