Timing matters with biotech stocks; these three companies offer distinct risk-reward profiles but have upcoming catalysts that could redefine their value
Local drugmakers, including Sun Pharma, Biocon, Zydus, Cipla, and Dr. Reddy’s are racing to develop cheaper versions of semaglutide as its Indian patent nears expiry.
Eli Lilly’s first quarter saw rapid revenue growth, but the market responded negatively due to profit shortfalls and emerging competitive pressures. Management credited the surge in sales to the continued success of its diabetes and obesity medicines, particularly Mounjaro and Zepbound, which now account for a significant portion of total revenue. However, executives also acknowledged that higher marketing and R&D spending, as well as elevated costs tied to launching new products and acquiring late-stage assets, weighed on profitability. CEO Dave Ricks noted that the company is facing “a lot of investor focus right now on tariffs and trade,” while CFO Lucas Montarce cited a “26% increase in marketing, selling and administrative expenses” as Lilly ramped up promotion for new launches.
GLP-1 obesity drug use is rising, but long-term adherence remains low. While one-year persistence has improved in 2024, only 8.1% stayed on therapy for three years.
HIMS CEO said that the pharma company’s commercial team has been increasingly pressuring the company to control clinical standards and steer patients to Wegovy regardless of whether it is clinically best for patients.
