Feb 23 (Reuters) - Novo Nordisk shares slumped by more than 16% on Monday, wiping away the remaining ‌gains brought by its blockbuster weight-loss drug Wegovy, ‌after the drugmaker said its next-generation obesity drug CagriSema underperformed Eli Lilly's ​rival. Novo, which in 2024 was worth more than $650 billion, has since shed around $475 billion, with the shares back at levels last seen before Wegovy transformed it into Europe's most ‌valuable drugmaker. Novo's shares ⁠fell to their lowest level s ...

Core Insights - Eli Lilly aims to establish India as a global export hub for its pharmaceutical products, leveraging a $1 billion investment in contract manufacturing [1] - The company's weight-loss drug Mounjaro has seen sales double shortly after its launch in India, becoming the top-selling medicine by value in the country [1] - Lilly plans to introduce additional products in India, including the Alzheimer's drug donanemab and potential future obesity treatments, pending regulatory approvals [1] Company Strategy - Eli Lilly does not currently have its own manufacturing facility in India but intends to export drugs produced locally to global markets [1] - The company is focused on enhancing digital and social media campaigns to raise awareness about obesity and expand Mounjaro's reach in smaller cities [1] - Partnerships with local firms, such as Cipla and digital health platforms like Tata 1MG, Practo, and Apollo, are part of Lilly's strategy to widen distribution [1] Market Competition - In India, Eli Lilly competes with Novo Nordisk, which produces Wegovy, as the market for weight-loss drugs is expected to grow significantly [1] - Novo Nordisk has reduced the price of Wegovy by up to 37% to maintain market share, but Lilly believes Mounjaro's superior efficacy will keep it competitive [1] - The expiration of Novo's patent on semaglutide is anticipated to lead to the launch of cheaper generic versions of Wegovy by local firms [1]

Core Insights - Corxel Pharmaceuticals has raised $287 million in a Series D1 funding round to advance its obesity drug CX11 into further testing [8] - The financing reflects a trend among drugmakers and biotech investors in the U.S. and Europe to license drugs discovered in China, with successful acquisitions already seen in the market [3][4] - CX11, an oral GLP-1 therapy, is positioned as a differentiated treatment that could provide weight reduction comparable to injectable GLP-1 medications [6] Industry Trends - There is a growing interest in obesity treatments, with startups like Kailera Therapeutics and Verdiva Bio emerging around weight loss drugs developed in China [5] - The FDA's recent approval of an oral form of Wegovy indicates a strong market demand for oral obesity medications, with initial prescription numbers showing a fast start [7] - Corxel plans to conduct a global Phase 2 study for type 2 diabetes this year and is preparing for additional late-stage trials [8]

Core Insights - Eli Lilly has reached a market value of $1 trillion, becoming the first drugmaker to achieve this milestone, highlighting its significant growth in the weight-loss drug market [1] - The company's stock has surged over 35% this year, primarily driven by the booming demand for obesity treatments, which are now a highly lucrative segment in healthcare [1][7] - Lilly's recent stock performance has outpaced the broader US equity market, with a 75% increase since the launch of its drug Zepbound in late 2023 [3][4] Financial Performance - In the latest quarter, Lilly reported combined revenue exceeding $10.09 billion from its obesity and diabetes portfolio, which constituted more than half of its total revenue of $17.6 billion [5][9] - The company is trading at a high valuation of approximately 50 times its anticipated earnings for the next 12 months, reflecting strong investor confidence in the sustained demand for obesity drugs [4] Market Outlook - The weight-loss drug market is projected to reach $150 billion by 2030, with Lilly and Novo Nordisk expected to dominate global sales [6] - Investors are particularly focused on Lilly's upcoming oral obesity drug, orforglipron, anticipated to receive approval early next year, which is expected to capitalize on the success of existing injectable drugs [6] Strategic Developments - Lilly has entered a deal with the White House to reduce prices for its weight-loss drugs, alongside planned investments to expand drug production, which are expected to support its growth trajectory [9][12] - Analysts are monitoring whether Lilly can maintain its growth amidst potential pricing pressures on its drugs and the effectiveness of its scale-up plans and diversified pipeline [11]

Core Insights - Eli Lilly is set to begin late-stage trials for its experimental amylin obesity drug, eloralintide, next month following positive mid-stage study results [1][2] Group 1: Drug Efficacy - The highest dose of eloralintide resulted in an average weight loss of 20.1% over 48 weeks for patients with obesity or who are overweight [2] - The lowest dose led to a 9.5% weight loss at 48 weeks, compared to 0.4% for the placebo group [6] - A two-step dose escalation starting at 6 mg resulted in a 19.9% weight loss, while a three-step escalation starting at 3 mg led to a 16.4% weight loss [6] Group 2: Competitive Landscape - Eli Lilly's advancements position it as a strong competitor in the amylin treatment space, which is seen as the next wave of obesity treatments [3] - Major pharmaceutical companies like Roche, AbbVie, and Novo Nordisk are investing heavily in amylin treatments, indicating a competitive market [4] - Novo Nordisk and Pfizer are engaged in a takeover battle for Metsera, which has a potential once-monthly amylin drug in its pipeline [4] Group 3: Mechanism and Side Effects - Amylin analogs mimic a hormone that suppresses appetite and reduces food intake, potentially offering advantages over existing GLP-1 treatments [5] - Common side effects of eloralintide include mild to moderate gastrointestinal symptoms and fatigue, particularly at higher doses [7] - Patients who gradually increased their doses experienced fewer side effects [7][8]

Group 1 - Pfizer is acquiring Metsera for $4.9 billion, paying $47.50 per share, which is a premium of over 42% compared to Metsera's closing price on Friday [1] - Pfizer may pay an additional $22.50 per share based on the development of Metsera's product pipeline [1] - Metsera has no products on the market but has four programs in clinical development and one in mid-stage testing [2] Group 2 - Demand for obesity treatments has increased significantly, driven by leading products like Zepbound from Eli Lilly and Wegovy from Novo Nordisk [2] - Pfizer currently has no obesity treatments available but is working on some in clinical development [3] - Earlier in the year, Pfizer halted the development of a potential once-daily pill treatment before late-stage testing [3]

Group 1 - Viking Therapeutics is set to focus on key pipeline updates during its first-quarter earnings call, particularly on three clinical candidates: VK2735 for obesity, VK2809 for non-alcoholic steatohepatitis (NASH), and VK0214 for X-linked adrenoleukodystrophy (X-ALD) [1] - VK2735 is highlighted as a significant interest due to the growing trend in obesity treatments and the transformative effects of weight loss in the consumer health space [2] - The company has shown a classic reversal bottom in its stock price, indicating potential positive momentum, and is currently outperforming benchmarks on the Leadership indicator [3] Group 2 - The weekly chart analysis indicates that VKTX is in a distribution phase rather than a bear phase, with the 200-week moving average serving as a strong support area for the stock price [4] - The stock price is currently trading at levels similar to the end of 2023, with a notable peak at $100, suggesting potential for recovery [5] - A weekly close above $24.50 is seen as a positive indicator, with the potential for rewards exceeding risks by 4-5 times [5]