I don’t quite understand why Lily is so worthy of the premium investors pay for it over Novo in the GLP-1 space. LLY’s stock performance over TTM is double that of NVO, and it has nearly twice the forward PE. They offer comparable products, with Lily’s Mounjaro being slightly more effective than Novo’s Wegovy, but GLP-1’s are so sought after right now that there are shortages of both, meaning that demand is equally strong and patients will take whichever medication they can get their hands on. Beyond that, Novo is the one showing significant efficacy improvements with weight loss in clinical trials with their oral GLP-1, that will no doubt be easier to manufacture and preferable to an injectable. It’s made me hesitant to want to invest in NVO even though it seems like great value, when investors for some reason discount it.
