LLY - Better Buy: Eli Lilly vs. Viking Therapeutics
2024-03-03 09:35:00 ET
Comparing Eli Lilly (NYSE: LLY) and Viking Therapeutics (NASDAQ: VKTX) might initially seem odd. The two drugmakers don't seem to have much in common. Eli Lilly is more than 50 times the size of Viking by market cap and boasts a long list of approved medicines and an impressive track record of success. Viking Therapeutics, on the other hand, is a clinical-stage, mid-cap biotech stock whose most advanced candidate isn't even in a late-stage study yet. Yet for invest purposes, is there any reason to choose Viking Therapeutics over Eli Lilly? Let's find out.
Eli Lilly has delivered market-crushing returns over the past few years, and it isn't hard to figure out why. The drugmaker has made impressive regulatory progress, none more important than tirzepatide, a clinical compound marketed as Mounjaro targeting Type-2 diabetes, and Zepbound for treating obesity. Tirzepatide is the first and only dual GLP-1/GIP medicine to earn approval from the U.S. Food and Drug Administration (FDA).
In a nutshell, these two classes of drugs work by stimulating certain hormones in the body that help patients feel fuller for longer, and promote satiation. That's how they help patients lose weight. Some analysts predict that Eli Lilly's tirzepatide could hit peak sales of $25 billion and become the best-selling therapy in the history of the pharmaceutical industry . Eli Lilly's lineup goes far beyond this lone product, though.
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Better Buy: Eli Lilly vs. Viking Therapeutics