Eli Lilly’s (LLY) market share has dipped as the global battle to sell weight‑loss drugs to the masses intensifies.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Eli Lilly’s share of the weight-loss drug market in India took a hit in March as rival Novo Nordisk’s (NVO) market share held steady and a number of Indian generic drug makers flooded the market with lower‑priced copies of obesity medications.
Eli Lilly’s market share for weight-loss drugs sold in India fell to 56% in March from 61% a month earlier, according to data from industry intelligence provider Pharmarack. Novo Nordisk’s market share held steady at 25%.
The Indian Drug Market
With more than one billion people, India is a critical market for weight-loss drugs, including Eli Lilly’s new obesity pill called Foundayo. With 100 million people living with diabetes and nearly a quarter of the population classified as overweight, India is a key target of both Eli Lilly and Novo Nordisk.
India is also referred to as the “world’s pharmacy,” owing to its well-developed generic drugs industry that supplies about 20% of global generic medicines. Last month, the patent on semaglutide, the key ingredient in Novo Nordisk’s weight-loss drugs, expired, triggering a wave of cheaper Indian generics.
Eli Lilly is just beginning to market and sell its Foundayo weight-loss pill, which received regulatory approval from the U.S. Food and Drug Administration (FDA) on April 1 of this year.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,247.38 implies 31.53% upside from current levels.
