Eli Lilly is better at executing now than Novo Nordisk, says BMO's Evan Seigerman

Core Insights - The competitive dynamic between Eli Lilly and Novo Nordisk is highlighted, with Lilly currently outperforming Novo in execution and earnings expectations [2][3]. - There is a significant valuation gap between the two companies, attributed to Lilly's strong performance and Novo's internal challenges, including a new CEO and a failed acquisition attempt [3][4]. - Analysts suggest that Novo could become a value trap, while Lilly is expected to continue its outperformance in the coming years [5]. Company Performance - Eli Lilly is successfully beating earnings expectations and maintaining strong guidance, while Novo Nordisk has missed expectations and had to lower its forecasts [2]. - Internal issues at Novo, including leadership changes and strategic missteps, are contributing to its struggles in the market [3]. Valuation Perspectives - The valuation disconnect between Lilly and Novo is seen as justified due to Lilly's superior execution [4]. - Analysts recommend looking at other healthcare companies like Pfizer and Merck for value investments, rather than focusing solely on Lilly [4][5]. Investment Opportunities - Beyond the GLP-1 market, analysts identify Disc Medicine, a small-cap biotech in rare hematology, and Gilead Sciences, a leader in HIV treatment, as promising investment opportunities [6][7]. - Gilead's long-acting pre-exposure prophylaxis (PrEP) business and its leadership in cell therapy are noted as key strengths [7].