Why Eli Lilly, Novo Nordisk, and Viking Therapeutics Stocks All Popped Today

2 months ago 20

Rich Smith, The Motley Fool

Mon, Apr 14, 2025, 8:12 AM 4 min read

Early this morning, Pfizer announced it volition discontinue improvement of its danuglipron (PF-06882961) once-a-day oral GLP-1 value nonaccomplishment pill. Shares of companies volition injectable GLP-1 drugs already connected the marketplace -- Eli Lilly and Novo Nordisk -- gained 2% and 2.7%, respectively, done 10:30 a.m. ET. Viking Therapeutics, which does not yet person a GLP-1 cause connected the marketplace (but similar Pfizer, was racing to enactment 1 there) surged astir of all, gaining 9.9% connected the imaginable that present Viking, and not Pfizer, whitethorn extremity up being the 3rd large subordinate successful this value nonaccomplishment cause market.

In its property merchandise this morning, Pfizer explained that portion danuglipron exhibited the "potential to present a competitory efficacy and tolerability profile" to existing GLP-1 drugs, "a azygous asymptomatic subordinate successful 1 of the dose-optimization studies experienced imaginable drug-induced liver injury, which resolved aft discontinuation of danuglipron" (emphasis added). This was a beardown hint that it was the cause astatine responsibility for the antagonistic effect, and it convinced Pfizer to terminate further development.

Pfizer expressed disappointment astatine the request to discontinue the improvement of danuglipron, but insisted the institution remains "committed to evaluating and advancing promising programs," including successful the value nonaccomplishment market. But for present astatine least, it's nary longer anyplace adjacent the beforehand of the battalion successful this race.

(Pfizer banal was down 1.2% successful the aforesaid clip frame, by the way).

Package of value nonaccomplishment cause adjacent to a barbell.

The implications for Eli Lilly and Novo Nordisk look beauteous clear: The contiguous removal of a rival for the monolithic revenues they've been raking successful from the GLP-1 market, which helped assistance Lilly past $45 cardinal successful full gross past year, and pushed Novo past $44 billion.

Adding to Lilly's bully news, concern slope Guggenheim this greeting lowered its terms people connected the stock, but reiterated its bargain rating. As the expert explained, Lilly has a near-term catalyst that could thrust the banal higher: Q1 net travel retired connected May 1. And Guggenheim says that expert forecasts for the institution to gain $4.2 cardinal connected conscionable $12.8 cardinal successful gross (according to information from S&P Global Market Intelligence) look "comfortably achievable."