In the industry for diabetes treatment, Eli Lilly (LLY) is certainly making a good name for itself. It continues to expand around the world and use its partnerships well. There is some threatening news off in the distance, but I believe the company has placed itself in a strong position to respond to this event. I believe that Eli Lilly is currently a good stock, and even when the competition inevitably grows larger, the company should be strong enough to work through this and stay near the top of the industry.
Eli Lilly is aware of how important good partnerships are, as these are continuing to bring it many benefits. Eli Lilly and its partner Boehringer Ingelheim will begin selling a new diabetes treatment, linagliptin, in India. Additionally, the two companies plan to eventually introduce three more drugs in the country. This helps people with diabetes get better treatments around the world, and it also helps Eli Lilly strengthen its presence in India. Since diabetes is such a major problem in India, this is an incredibly important area for Eli Lilly to address. As the newer treatments enter more markets, there should be only benefits for Eli Lilly. I think this drug release is great news for the company and shareholders alike.
The partnership with Boehringer Ingelheim is not the only one bringing positive results though. Eli Lilly has recently announced that it is expanding its partnership with Novast Laboratories in China. This company will help Eli Lilly meet its manufacturing demand for high-quality generic drugs. This move is also in agreement with the Chinese government's plan to improve the quality of medical options available. Eli Lilly will provide good generic drugs in addition to products from its pipeline. Eli Lilly is once again using a partnership wisely, helping it attain a stronger global presence. This is another news event that I believe the shareholders should be quite pleased with.
As some may already know, Eli Lilly has presented positive study results indicating that one of its basal insulins is better than Sanofi's (SNY) Lantus, in terms of weight loss. In addition, the study suggested that Eli Lilly's treatment is better or equal to Lantus when it comes to glycemic control. There is some indication, furthermore, that Eli Lilly may have an upper hand because Lantus is only available for injection. In the follow-up to the study results, therefore, some have suggested that Eli Lilly's oral treatments will benefit the company and keep it further above the competition. This should benefit the stock as well and bring good results to shareholders. People should consider an important upcoming event, however, to keep this in perspective.
The leading non-insulin antidiabetic is Actos from Takeda and Eli Lilly, but this will be losing its patent exclusivity in August. There is an anticipated increase in the market for type 2 diabetes treatments, and this patent loss will bring a large amount of competition to Eli Lilly. The company's success in the diabetes market and strong ability to compete is not just an added bonus that will keep it on top, therefore, but it is incredibly necessary with this patent loss looming in the near future. This event is important to keep in mind, therefore, with all diabetes-related events that lead up to it.
As it may be clear by now, however, Eli Lilly is not a weak company. It is a strong force in the industry for diabetes treatment, and added competition will not ruin the company or the stock. In fact, its CEO recently received the first Global Health Partner Award from Project Hope. Over the next five years, Eli Lilly is going to invest $30 million in diabetes research and education in Mexico, Brazil, India, and South Africa. This is just one more way Eli Lilly is staying at the forefront of the industry, showing no signs of weakening.
As the competition will continue to build up, however, it is certainly worthwhile to consider what other major companies have been doing recently.
Novo Nordisk (NVO) has recently announced that it will be collaborating with JDRF to develop new treatments for type 1 diabetes. This collaboration will occur in Novo Nordisk's new research and development center, and it will help give the company an edge in this industry. Its insulin degludec is currently being considered by the Food and Drug Administration, and we are awaiting further development with this situation. Something that should be noted, however, is that Novo Nordisk is not just sitting around and waiting. It is currently working on another new diabetes treatment for patients with particularly high insulin requirements. This is one competitor that is also putting great effort toward diabetes treatments. These stories should help the stock price increase, benefiting shareholders.
Merck (MRK) may not be in the news for advancements in diabetes treatments, but it does have positive news to share with its shareholders. It has developed and tested a new insomnia drug called suvorexant. The test results have been quite positive, showing its effectiveness for helping patients fall asleep quickly and sleep through much of the night. As roughly one third of American adults have trouble falling asleep at night, this is a significant development for the company. It seeking approval for the pill this year already, and this should have a positive impact on Merck stock.
Pfizer (PFE) has not had a huge news presence recently, making it even worse that the company is facing another lawsuit for promoting the off-label use of antifungal drugs. This lawsuit will take place in Massachusetts, and it is similar to a case from last year. The company is not in a poor position, and it should be able to bounce back from this event. It will initially make investors concerned because of its poor business practices, and I believe this is completely reasonable. Legal trouble can certainly hold companies back. Since this is not such a major case and relates to problems people already knew about, however, I do not think this will have any major impact on Pfizer stock.
Eli Lilly continues to maintain its position as a strong pharmaceutical company, and it will keep playing a major role in the market for diabetes treatment. Novo Nordisk presents a great challenge to the company in this part of the field, and Merck is also continuing to do well in the pharmaceutical industry. With all the positive developments and the intelligent uses of partnerships, however, I believe Eli Lilly is a very strong stock at the moment and should be increasing over time.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.