Eli Lilly vs. Novo Nordisk: Which Is the Better Stock Buy?

Core Insights - Eli Lilly and Novo Nordisk are competing in the rapidly growing weight loss market, alongside their long-standing rivalry in diabetes medications [1][2] Group 1: Market Position - Novo Nordisk had a first-mover advantage with its diabetes drug Ozempic, which was introduced in 2018 and later led to the approval of Wegovy in 2021 for weight management [4] - Eli Lilly's Zepbound (tirzepatide) received approval in late 2023 and has surpassed Wegovy in quarterly sales due to its superior effectiveness demonstrated in clinical trials [4] Group 2: Product Development - Novo Nordisk is advancing with an oral formulation of Wegovy and has submitted an application for CagriSema, another weight loss therapy [5] - Eli Lilly is close to obtaining approval for its oral weight loss medication orforglipron and has a candidate, retatrutide, that achieved a mean weight loss of 28.7% after 68 weeks, the best in the industry [6] Group 3: Revenue Diversification - Novo Nordisk relies heavily on its diabetes and weight loss products for revenue, lacking blockbuster drugs outside these markets [7] - Eli Lilly has a more diversified portfolio, including cancer and psoriasis treatments like Verzenio and Taltz, each generating over $1 billion in annual sales [7]