Could This 1 Problem Put a Dent in Novo Nordisk and Eli Lilly Stock?
As you've probably noticed, the big pharma juggernauts Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY) are both making headlines with their wonder drugs for obesity and diabetes. But as smart investors know, positioning your portfolio ahead of the headlines they'll be making in the near future can be a profitable strategy -- especially if there's a risk waiting in the wings.
For these two players, there's at least one potential obstacle coming up that could put a damper on their ambitions, specifically with their blockbuster drugs that are currently used to treat diabetes and obesity. So let's take a beat to understand what they're trying to do, and why they may fall short.
Both Eli Lilly and Novo Nordisk have multiple drug development programs attempting to find a treatment for non-alcoholic steatohepatitis, a chronic liver condition more commonly known by its acronym, NASH. As many as 6.5% of people living in the U.S. today have the condition, so it's a major potential market that isn't yet addressed by any medicine. Per a report by Insight Partners, the market for NASH therapies could reach more than $24 billion annually before the end of the decade.
Source Fool.com
