"The pivot was triggered by early prescription data on Lilly's newly approved oral GLP-1, Fendayo. The pill drew about 3,700 prescriptions in its second week, while Novo's competing oral offering posted over 18,000 prescriptions in a comparable window."
"Despite Lilly's years of outperformance, 'in 2026, a dollar in each at December 31st is now worth exactly the same, $0.82.' Year-to-date, NVO is down 18.08% while LLY is down 20.66%."
"One panelist framed Novo as a 'get paid to wait' story, pointing to a projected 6.5%+ free cash flow yield in 2027 alongside a roughly 4% dividend yield."
Novo Nordisk has become a more compelling investment compared to Eli Lilly, following a significant decline in its stock price. Early prescription data for Lilly's new oral GLP-1, Fendayo, showed lower uptake than Novo's competing product. Despite Lilly's strong Q1 revenue, Novo's lower earnings multiple suggests a valuation reset. Analysts believe Novo's market leadership and potential for future growth make it a viable option, especially with its attractive dividend yield and free cash flow projections.
Read at 24/7 Wall St.
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