In pharma, you may take a bigger slice of the healthcare pie than your friends, however you might be nonetheless constrained by the scale of the pie. Irrespective of how good your most cancers or diabetes drug is, healthcare techniques will nonetheless need to preserve paying for coronary heart illness and rheumatoid arthritis remedies too.
That, in a nutshell, is why the divergence of obesity-diabetes firms from the remainder of the trade in recent times can’t go on endlessly. In 2023, Eli Lilly and Novo Nordisk have risen greater than 50% every, to turn out to be the 2 largest pharma firms by market capitalization, with their mixed worth now hovering round $1 trillion. By comparability, the remainder of the trade badly underperformed the market, with the NYSE Arca Pharmaceutical Index rising a measly 4% in contrast with 24% for the S&P 500.
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