Is This Decision by Pfizer Bad News for Eli Lilly?

Eli Lilly (NYSE: LLY) stock has soared by double digits over the past year -- and for good reason. The pharma giant sells two of the most sought-after drugs today, weight loss treatments Mounjaro and Zepbound. Together, these drugs are adding billions of dollars to the company's top line, helping Lilly report double-digit gains in quarterly revenue.

Today Eli Lilly shares the market with rival Novo Nordisk, which sells two weight loss drugs that work in a similar way. Both companies are generating tremendous growth, though demand is actually surpassing the number of doses they're able to produce. In response, they've each increased their production capacity with a goal of meeting this high demand.

If demand continues at today's pace or greater, it's clear that both of these companies could continue to generate growth. But Lilly and Novo Nordisk aren't the only companies aware of the opportunity in the market for weight loss drugs; another that's eager to get in on this space is (NYSE: PFE). In fact, the company recently decided to do something that could move it one step closer to joining Lilly in particular. Is this latest move by Pfizer bad news for Lilly? Let's find out.

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Source Fool.com