Welcome back to Money Movers. A major shakeup today at Novo Nordisk. The chairman and vice chair along with five independent board members, all not standing for reelection at the company's extraordinary general meeting in November.This follows Novo shakeup of its top post back in May when the company ousted CEO and appointed a new CEO in August. Novo Nordis just wrapping up its investor conference call today. HSBC's Rajeskumar was on the call and joined us with his reaction.Uh I I'm just making a list of al ...

Core Insights - Pfizer (PFE) has announced a definitive agreement to acquire Metsera (MTSR), a developer of obesity drugs, to re-enter the obesity market after discontinuing its own weight-loss pill, danuglipron [1][5]. Company Summary - Pfizer will acquire Metsera's shares for $47.50 per share, totaling an enterprise value of $4.9 billion, with an additional contingent value right (CVR) of up to $22.50 per share based on clinical and regulatory milestones [2][10]. - The acquisition includes Metsera's four clinical-stage programs, notably the GLP-1 receptor agonist MET-097i, which is currently in phase II studies [3][10]. - The boards of both companies have unanimously approved the transaction, expected to close in Q4 2025, pending shareholder approvals [4]. Industry Summary - The obesity market is projected to grow to $100 billion by 2030, with Eli Lilly (LLY) and Novo Nordisk (NVO) currently leading the market with their GLP-1 injections [6]. - Other companies, including Amgen and Viking Therapeutics, are also developing advanced GLP-1-based candidates in late-stage studies [7]. - Metsera's products are in early development stages, with potential market entry around 2028-2029, indicating that Pfizer may lag behind competitors in this highly competitive space [8]. - Other large pharmaceutical companies, such as AbbVie, Roche, and Merck, are also entering the obesity market through licensing deals with smaller biotech firms [9][11][12].

Core Viewpoint - Viking Therapeutics (VKTX) is a promising biotech company developing VK2735, a dual GLP-1 and GIP receptor agonist for obesity treatment, despite recent setbacks in clinical trials [1][4]. Company Summary - VKTX's stock faced a significant decline after reporting mixed results from a mid-stage study of VK2735, where patients on the highest dose lost up to 12.2% of body weight, but dropout rates due to adverse events were concerning at 28% for VK2735 compared to 18% for placebo [2][3]. - The company aims to address tolerability and safety concerns by gradually increasing doses for patients [3]. - Despite the challenges, VKTX achieved its primary and secondary endpoints in the study, indicating potential for future development [4]. Industry Summary - The obesity market in the U.S. is projected to reach $100 billion by 2030, with major players like Eli Lilly and Novo Nordisk leading the market with their injectable drugs [5]. - Eli Lilly and Novo Nordisk are actively working on oral weight-loss pills, with Novo's oral Wegovy under FDA review and Lilly planning to submit a regulatory filing for its oral drug orforglipron by the end of 2023 [6][7]. - Amgen is also advancing in the obesity space with its investigational drug MariTide, which is in phase III studies [8]. Valuation and Estimates - VKTX shares are trading at a premium valuation, with a price-to-book ratio of 3.66 compared to the industry average of 3.19 [11]. - Loss per share estimates for VKTX have widened significantly, with 2025 estimates increasing from $1.87 to $2.48 and 2026 estimates rising from $2.54 to $3.15 [13].

Novo Nordisk's new chief executive officer is calling workers back to the office as the Ozempic maker struggles to catch up with Eli Lilly & Co in the hyper-competitive obesity market https://t.co/rS8vnApcu9 ...

Workforce Reduction - Novo is reducing its workforce by 11% [1] Market Strategy - Novo aims to accelerate its efforts to compete with Eli Lilly in the obesity market [1] - The company may adopt strategies similar to its US rival to achieve its goals [1]

Core Viewpoint - Eli Lilly and Company is facing challenges due to global uncertainties and competitive dynamics, but it has strong growth prospects driven by its key products Mounjaro and Zepbound, alongside a robust pipeline of new drugs. Group 1: Stock Performance and Market Dynamics - Eli Lilly's shares have declined by 8.2% in the past month, largely due to global uncertainties from the tariff war and fears of a recession [1] - The stock has outperformed the industry, which has decreased by 4.1%, and the S&P 500 index [15][26] - Despite a 1.7% decline in stock price this year, Lilly's market cap exceeds $700 billion, reflecting a 420.3% increase over the past five years [26] Group 2: Product Performance and Sales Growth - Mounjaro and Zepbound generated combined sales of $16.5 billion in 2024, accounting for approximately 36% of total revenues [3] - Sales growth of Mounjaro and Zepbound was impacted by supply and channel dynamics in the second half of 2024, raising concerns about demand [4] - Lilly expects to launch Mounjaro in new international markets in 2025, which is anticipated to boost sales [6] Group 3: New Drug Approvals and Pipeline - The FDA approved Zepbound for a second indication, which is expected to drive sales higher [7] - Lilly has gained approvals for several new drugs, including Omvoh and Jaypirca, contributing significantly to top-line growth in 2024 [8] - The company is making rapid progress in its pipeline, with several mid to late-stage readouts expected in 2025 [9] Group 4: Competitive Landscape - The obesity market is projected to expand to $100 billion by 2030, with Lilly and Novo Nordisk currently dominating [10] - Several companies, including Amgen and Viking Therapeutics, are developing GLP-1-based candidates that could pose competition to Lilly's products [12] - Other pharmaceutical companies are also entering the obesity space, which may threaten Lilly's market position [14] Group 5: Financial Outlook and Shareholder Returns - Lilly expects revenues in the range of $58.0 billion to $61.0 billion in 2025, indicating a 32% year-over-year growth [27] - The company returned $3 billion to shareholders in 2024 through share repurchases and dividends, and has approved a new $15 billion stock buyback plan [29]