Why Eli Lilly Stock Is Jumping Today
Shares of Eli Lilly (NYSE: LLY) were jumping 3.3% as of 11:22 a.m. ET on Wednesday. The gain came after Novo Nordisk (NYSE: NVO) announced that it plans to stop a kidney outcomes clinical trial evaluating Ozempic (semaglutide) in treating patients with type 2 diabetes and chronic kidney disease. The study's independent data monitoring committee recommended the trial be halted because results from an interim analysis showed an efficacy level that met pre-specified criteria.
Novo Nordisk's shares were up 5.3% on the news. But why did Lilly's stock enjoy a nice bump, too? The general rule of thumb is that what's good for Ozempic is also good for Lilly's Mounjaro. This explains why both big pharma stocks rose on Wednesday.
Both Ozempic and Mounjaro are GLP-1 agonists that mimic the action of the glucagon-like peptide 1 (GLP-1) hormone. Mounjaro is also a GIP (glucose-dependent insulinotropic polypeptide) agonist. This dual mechanism of action appears to give Mounjaro efficacy advantages over Ozempic and other GLP-1 agonists. Because of this, several analysts predict that Mounjaro's sales will eventually surpass Ozempic's sales.
Source Fool.com
