Eli Lilly (LLY) shares were down nearly 10% as investors reacted to CVS (CVS) naming Novo Nordisk’s (NVO) blockbuster GLP-1 drug Wegovy as a preferred drug on its formulary. But Eli Lily’s CEO isn’t as concerned.
Yahoo Finance’s Anjalee Khemlani reports:
Eli Lilly (LLY) has enjoyed a successful run the past several quarters as the company’s blockbuster GLP-1 weight-loss drug Wegovy gains steam in the obesity space.
But Wall Street wiped out more than $90 billion in the company’s market cap during trading Thursday after competitor Novo Nordisk (NVO) locked in a deal to have its GLP-1 listed on CVS’s (CVS) formulary as the preferred weight-loss drug for patients.
But Eli Lilly CEO David Ricks waved off the deal Thursday, telling Yahoo Finance in an interview that the company is focused more on upcoming obesity drugs in its pipeline and sees exclusive deals as an older way of doing business.
“We’re not interested in exclusive deals. We think innovation and choice is very important. And we’re well into the product replacement cycle, and there’s more coming,” Ricks said, referring to the highly anticipated oral form of Eli Lilly’s GLP-1 orforglipron, which is expected to hit the markets mid-next year.
“It’s in some ways a little disappointing to see this. It feels a little bit like last decade, these sort of lock-up deals,” Ricks added.
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