A leading pharmaceutical stock that goes head-to-head against Novo Nordisk A/S (NYSE:NVO) is surging amid a potential deal with the Trump administration, which involves cutting the prices of their coveted weight-loss drugs in return for their Medicare coverage.
This comes amid escalating pressure from President Donald Trump to slash the prices of popular obesity drugs, as part of the “most-favored-nation” pricing models, which seek to align U.S. drug prices with countries where they are priced the lowest.
Novo Nordisk’s GLP-1 Rival Surges
The Momentum score in Benzinga’s Edge Stock Rankings is calculated based on the relative strength of a stock, taking into consideration the price movements and volatility across multiple time frames, before being ranked as a percentile against all other stocks.
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Here’s a pharmaceutical company that has witnessed a big spike in its Momentum scores, within the span of a week, and the reason why.
Eli Lilly & Co.
Indiana-based Eli Lilly And Co. (NYSE:LLY), which competes in the weight-loss drug market against Novo Nordisk, saw its Momentum score in Benzinga’s Edge Rankings soar from 20.58 to 53.23, within the span of a week, indicating remarkable strength in the stock.
This can be attributed to the company’s better-than-expected third-quarter results last week, where it beat estimates on the top and bottom lines, while raising its guidance for the full year.
However, the immediate reason behind the surge is the potential deal with the White House, which brought an end to months of uncertainty surrounding the stock, as well as the broader industry. The stock surged 2.09% on Wednesday, closing at $925.81, hitting a 14-month high on the news.
The stock scores high on Momentum, Growth and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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