Cramer Prefers Eli Lilly as Novo Nordisk Stock Plunges, Sales Guidance Cut 5%-13%
Jim Cramer advised investors to prefer Eli Lilly over Novo Nordisk, arguing that Lilly excels at drug development while Novo focuses on price cuts. He noted Novo's shares plunged nearly 15% then another 6% after guiding for a 5%-13% sales decline this year in its GLP-1 franchise.
1. Cramer's Recommendation
During a market call, Jim Cramer told investors they should move out of Novo Nordisk and into Eli Lilly, stating, "Oh no, you don’t want to be in Novo Nordisk. You want to be in Eli Lilly. Novo Nordisk is really good at cutting prices. Eli Lilly’s great at making drugs."
2. Stock Reaction and Guidance
Novo Nordisk’s stock sank nearly 15% in one session and dropped a further 6% the next day after the company forecast a 5%-13% sales hit this year due to pricing pressures in its GLP-1 business, highlighting growing competition in the obesity and diabetes treatment market.