Hello everyone. Looking to get in on what I hope will be an upcoming tsunami for weight loss drugs like Wegovy and Mounjaro.
Here's the the deal.
Novo Nordisk is priced at $162.5 and a div of 1.47% (roughly $2.38 yearly).
Eli Lilly is priced at $427.10 and a div of 1.06% (roughly $4.52 yearly).
Both are solid and in not worried about them that much. I can get $6.26 div on the Novo from the same cost of Eli, more than 2.5 times.
But the div isn't the reason I'm looking. The weight loss drugs are going to be HUGE. The potential can already be seen in these stocks over the last year. Novo has the better div and already has FDA approval, giving them a head start. Eli however, has the drug that has shown to be more effective. By up to 5% and should get FDA approval within 12 months.
I COULD split funds and get both, but due to what I'm working with, that would be some small positions.
Thoughts on this?
Side note…Pfizer has a good div and is trading down lately, but they have their own version of this that's in late stage trials. That could be a big bump in the next year or two.
There is also PPH, a Vaneck Pharma EFT. it has all 3 plus 22 other similar companies.
All told, I'm currently leaning NOVO. then I might pick up some Pfizer on the cheap if it gets a bit lower. And I'm thinking there will be at least one report in the future about a snag or possible denial by the FDA for Eli, and I could pick up on the drop next year.
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