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.
Stock Forecasts
LLY
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.
NVO
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.
HIMS
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.
Related News
Elon Musk, RFK Jr., Dr. Oz, and the coming clash over Ozempic
Dec 18, 2024, 10:49 AM
Biden officials recently proposed allowing Medicare to start covering GLP-1 medications to treat obesity. It's unclear whether Trump's administration will see it through.
Popular weight-loss drug Wegovy goes on sale in China
Nov 18, 2024, 11:34 PM
There are 180 million people living with obesity in China, who will now be able to purchase the treatment.
The weight-loss frenzy is making some pharma stocks much more volatile. Will the drama continue?
Nov 16, 2024, 9:00 AM
The excitement around the new weight-loss industry is overtaking other disease areas and portfolios for publicly traded companies.