Roundhill Investments CEO Dave Mazza has drawn a compelling comparison between Eli Lilly and Co (LLY) and NVIDIA Corp (NVDA), likening the former’s position in the weight loss and GLP-1 market to the latter’s dominance in the AI space.
Mazza emphasizes that weight loss medications, much like AI and Nvidia, were largely overlooked until recently. He points to Eli Lilly’s leadership role, attributing their strong earnings growth to the surging demand and limited supply of their drugs. This view was shared in an interview with Yahoo Finance.
“Lilly is the Nvidia of the GLP-1 and weight loss space,” Mazza remarked. He attributes Eli Lilly’s strong market performance to their consistent ability to exceed forecasts. Recently, the company announced a direct-to-consumer offering, making an injectable version of their drug available at half the price. This move significantly expands access for those without insurance. Mazza also highlights that Eli Lilly’s stock has remained robust despite market fluctuations.
However, he cautions that high valuations could pose risks if sales growth forecasts aren’t met, though he maintains optimism regarding the company’s ability to justify its valuation.
Eli Lilly’s recent moves in the weight loss drug market have been significant. On Tuesday, the company introduced vials containing lower doses of their weight-loss drug Zepbound, priced up to 50% lower to increase access and supply. These vials are available for self-pay patients with an on-label prescription, significantly expanding Zepbound’s availability in response to high demand.
The rivalry between Novo Nordisk A/S (NVO) and Eli Lilly has intensified as both companies compete for dominance in the rapidly growing obesity drug market. While Novo Nordisk’s Wegovy and Ozempic, along with Eli Lilly’s Zepbound, have garnered substantial attention, both companies are laying the groundwork for broader growth. Novo Nordisk’s CEO, Lars Fruergaard Jørgensen, has hinted at the company’s aspirations beyond its current portfolio, emphasizing a growing focus on cardioembolic diseases.
