Eli Lilly Diabetes and Obesity Drugs Show Promise, Outpacing Pfizer
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Eli Lilly's diabetes drug Mounjaro is seeing huge demand, making it a top revenue generator. Its newly approved sister drug Zepbound targets the lucrative obesity market.
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Eli Lilly is well-positioned to gain market share in the growing diabetes and obesity medication markets, which could reach $200 billion by 2030.
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Eli Lilly has a broad drug portfolio beyond weight loss, including cancer and autoimmune diseases. Its long-term stock returns have richly rewarded investors.
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Pfizer is trying to compete in weight loss but likely too far behind leaders Eli Lilly and Novo Nordisk to gain much traction.
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Pfizer faces headwinds like declining COVID vaccine revenue, costs from acquiring Seagen, and potential dividend cuts due to lower free cash flow.