Pharmaceutical competition: Eli Lilly vs. Novo Nordisk

What happened: Eli Lilly and Novo Nordisk are competing in the GLP-1 pill market, with both companies aiming to capitalize on the growing anti-obesity market. Eli Lilly currently leads the market, having won U.S. approval for its new weight loss drug, which showed significant results in clinical trials. Novo Nordisk, however, is catching up with its newer launches, having already topped 3 million prescriptions for its Wegovy pill since its U.S. entry.

Market impact: The pharmaceutical industry, particularly the weight loss drug segment, is affected. Eli Lilly's leadership in the GLP-1 market has driven its stock to be seen as a potential millionaire-maker, while Novo Nordisk's rapid growth in prescriptions has made it an attractive buy for some investors. Competition in this space is fierce, with other pharmaceutical giants like Regeneron and Amgen also developing promising weight loss candidates.

What to watch next: Investors should keep an eye on the upcoming earnings reports from both Eli Lilly (Q2 2023, expected on July 27) and Novo Nordisk (Q2 2023, expected on August 2). These reports will provide insights into the companies' financial health and progress in their weight loss drug portfolios. Additionally, the U.S. Medicare coverage expansion for weight loss drugs, which could significantly increase the market size, is a regulatory decision to monitor.