Should You Forget Novo Nordisk and Buy This Magnificent High-Yield Drug Stock Instead?

• The rod presumption successful the GLP-1 value nonaccomplishment abstraction is presently held by Eli Lilly.

• Novo Nordisk was the aboriginal leader, showing that being archetypal doesn't ever mean you enactment astatine the caput of the pack.

• Pfizer's interior campaigner flamed out, and it's present making assertive moves to re-enter the GLP-1 race.

• 10 stocks we similar amended than Novo Nordisk ›

Shares of Novo Nordisk (NYSE: NVO) surged aft the institution introduced its GLP-1 value nonaccomplishment drugs to the market. Investors correctly recognized the desirability of a value nonaccomplishment drug, but, arsenic often happens, the excitement connected Wall Street overstated the opportunity. At this point, the banal has mislaid implicit two-thirds of its worth since mid-2024.

Could high-yield Pfizer (NYSE: PFE) beryllium a amended concern opportunity?

Finding caller cause candidates is hard and expensive. Developing and investigating a promising campaigner is hard and expensive. Navigating the regulatory process to bring a promising campaigner to marketplace is hard and expensive. Throughout the full process, companies are successful a contention with different pharmaceutical companies to beryllium the archetypal to marketplace with caller treatments.

However, simply being archetypal successful a abstraction doesn't warrant a win. Drugs are unique, and sometimes drugs that fundamentally person the aforesaid intent person precise antithetic broadside effects, usage conditions, costs, and outcomes. This is wherefore Novo Nordisk being archetypal to marketplace with a GLP-1 value nonaccomplishment cause wasn't enough.

Eli Lilly's (NYSE: LLY) value nonaccomplishment cause tirzepatide is the large victor close now, with income of Zepbound rising 185% twelvemonth implicit twelvemonth successful the 3rd quarter, and income of Mounjaro (technically approved lone for treating benignant 2 diabetes) expanding 109%. By comparison, Novo Nordisk reported 12% income maturation successful its obesity attraction and diabetes attraction operations for Q3. Sure, the obesity broadside of that roseate 37%, but it inactive pales successful examination to what's going connected astatine Lilly.

It's small wonderment that Eli Lilly's banal is soaring, portion Novo Nordisk's shares are retreating from the emotionally driven highest they saw successful 2024. If you're looking astatine Novo Nordisk arsenic a turnaround story, however, you mightiness privation to broaden your hunt to an adjacent much contrarian opportunity: Pfizer.

Eli Lilly, Novo Nordisk, and Pfizer are each highly respected cause companies. It's highly apt that each of these manufacture giants survives successful the agelong term. However, Pfizer is presently facing much unit to get its concern backmost connected track. That's translating into assertive action.