FDA finalizes decision to end Lilly's GLP-1 shortage, analysts predict Novo will be next

Published On Dec 19, 2024, 3:57 PM

The FDA has officially ended the drug shortage for Eli Lilly's GLP-1 treatments, particularly tirzepatide, used in weight loss and diabetes management. The decision comes after a review following a lawsuit from compounders who had been filling the gap left by the drug's scarcity. As a result, copycat manufacturers are given approximately 60 days to cease production of unapproved tirzepatide alternatives. Analysts predict Novo Nordisk's drugs, Ozempic and Wegovy, will soon revert from the FDA's shortage list as they have also confirmed availability.

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Stock Forecasts

LLYView LLY chart on TradingView

Positive

Lilly’s stock is likely to benefit from the resolution of the shortage and strategic enforcement against unapproved products, ensuring a continued strong demand for their authorized treatments.

NVOView NVO chart on TradingView

Positive

Novo Nordisk's stock may experience positive momentum as they are expected to have similar good news regarding the end of shortages for their products, further strengthening their market position.

HIMSView HIMS chart on TradingView

Negative

Hims & Hers, heavily reliant on GLP-1 treatments, may face continued pressure as they could lose market share to FDA-approved products, leading to potential short-term declines in their stock.

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