Recently, it seems that not only the AI concept stocks have been hurt during the rotation of the U.S. stock market and the decline of the stock index. The market value of Eli Lilly and Co has also evaporated more than $120 billion in just over a week, and its leading position in the frenzy of weight-loss drugs is being threatened because at least two competitors' obesity treatment drugs have made encouraging progress. In terms of product structure, the operating income of 10-30 billion yuan products is 401/1288/60 million yuan, respectively.
Recently, during the rotation of US stocks and the plunge of stock indexes, it seems that not only AI concept stocks have been injured-$Eli Lilly and Co (LLY.US)$its market cap has also evaporated more than $120 billion in just over a week, and its leading position in the crazy wave of weight-loss drugs is under threat, as at least two competitors' obesity treatment drugs have made encouraging progress recently.
Market data shows that the stock price of this leading American pharmaceutical company fell by another 4.5% on Thursday, hitting its lowest level since May. In the past eight trading days, the company's stock price has plummeted by a total of 14%, which is the worst eight days since 2020…
Another leading stock in weight-loss drugs also fell by about 10% during the same period, with a market cap evaporating more than $40 billion.$Novo-Nordisk A/S (NVO.US)$During the same period, it also fell by about 10%, with a market cap evaporation of over 40 billion US dollars.
The promising weight-loss drug trial data updated by Viking Therapeutics and Roche Holding AG in the past week directly led to the decline of Eli Lilly's stock price. As competitors are getting closer to owning viable competing drugs, investors believe the "duopoly" position of Eli Lilly and Novo Nordisk in the obesity market may come to an end.
It was previously predicted that the scale of the weight-loss drug market will reach $130 billion by 2030.
Jared Holz, a healthcare expert at Mizuho Securities, said, "Our estimate is that this track will not always be a duopoly, and we expect that the rapid market reaction caused by competitive trials will eventually weaken over time."
Previously, Viking Therapeutics stated on Wednesday evening that the company is pushing its weight-loss injections into late-stage trials and exploring monthly dosage. The company also stated that it will push the oral version of the drug into mid-stage trials starting from the fourth quarter.
Viking's stock price soared 39% on Thursday, marking its best performance since February.
At the same time, Roche Holding AG also stated that after the experimental weight-loss drug achieved promising results last week, the company is planning to accelerate the development of obesity drugs.
Jeff Jonas, portfolio manager at Gabelli Funds, said, "Eli Lilly may have a good growth period for another two years, but I think they will eventually reach a bottleneck."
Holz of Mizuho also believes that the current market rotation-traders are withdrawing from large companies that have performed well this year-is another important reason for the decline in Eli Lilly's stock price.
Eli Lilly's market value has now fallen below $800 billion, but it has still risen by about 41% so far this year.
Holz added, "If the stock price remains at the current low level, its stock price may rebound after the release of its second-quarter financial report scheduled for August 8th. Once all signs indicate that the fundamentals are very strong, I think the stock price will rise."
Editor: Eason