The biopharmaceutical sector might see some disruptions soon, according to Barclays. This belief comes after a mid-stage clinical study suggested that the diabetes medication lixisenatide might benefit patients with Parkinson’s disease. This drug is part of a popular group of obesity treatments known as GLP-1 agonists, a class that’s currently dominated by Eli Lilly’s (NYSE:LLY) tirzepatide and Novo Nordisk’s (NYSE:NVO) semaglutide.
The study showed that those who were administered lixisenatide did not experience worsening motor disabilities after one year. The implications of GLP-1 agonists like lixisenatide potentially offering benefits for neurological conditions such as Parkinson’s could complicate the current development of other treatments.
In fact, a successful outcome could boost the appeal of GLP-1 agonists for treating other neurodegenerative disorders. This would position companies like Eli Lilly and Novo Nordisk to benefit from expanded applications.
Should I invest in Eli Lilly and Novo Nordisk?
Turning to Wall Street, both Eli Lilly and Novo Nordisk are rated as Buys, with 9 out of 10 smart score ratings. However, analysts expect more from LLY stock, as its upside potential comes in at 13.38% versus NVO’s 6.08%.
