Novo and Lilly Need a Profit Beat to Take Back Market Momentum

  • Lilly and Novo trade at steep premiums to other drugmakers
  • Supply constraints have limited their ability to boost sales

Analysts estimate Novo’s Wegovy and Ozempic will have combined sales of more than $27 billion this year.

Photographer: Carsten Snejbjerg/Bloomberg
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Eli Lilly & Co. and Novo Nordisk A/S have had their years-long stock momentum halted in recent weeks, putting extra importance on this week’s earnings from the obesity drugmakers.

The share-price decline since mid-July has shaved billions of dollars off the market value of the Zepbound and Wegovy makers, trimming their year-to-date outperformance of sector peers. And after recent outlook upgrades from Pfizer Inc., Roche Holding AG and AstraZeneca Plc, the pressure is on for them to follow suit.