It doesn’t matter
Ok before we get started today a few quick housekeeping notes. Yes, several of our past posts were mistakenly republished. No, we have not lost our mind, not yet anyway but the way things are going it might make things easier. As Momma Kliff used to say; “When all around you are losing their mind it might just help to join them then to try and understand them.”
Ok with that out of the way the street once again is making a deal out of meaningless piece of news. Shares of Novo Nordisk (NYSE: NVO) are up over $2 today on news that the FDA seems to like semaglutide Novo’s once-weekly GLP-1. Which if approved by the FDA will be the forth long-acting GLP-1 approved by the agency and the third to be on the market. Yes, GlaxoSmithKline (NYSE: GSK) withdrew their long-acting GLP-1 Tanzeum from the market.
See Tanzeum couldn’t compete with Bydureon from AstraZeneca (NYSE: AZN) and Trulicity from Lilly (NYSE: LLY), two drugs semaglutide will compete with. Now you’ll hear all sorts of explanations from Novo as to why semaglutide stands a chance. Why it will succeed being the fourth long-acting GLP-1 to market. And none of them will matter.
What matters here …. wait for it ….. is … wait for it and all together now MONEY. Once approved Novo will go before payors and either pony up huge discounts combined with huge rebates otherwise semaglutide will join Tanzeum in the long-acting GLP-1 graveyard. And NO, it does not matter if semaglutide is light years better than Bydureon or Trulicity.
Listen we know analysts are slow learners we just figured since they have fancy degrees from big name schools – you know the ones that don’t have big time football programs, the one’s that supposedly educate their students. That they would wake up smell the Starbucks and realize that these drugs have become COMMODITIES that PRICE matters performance does not.
Let’s be honest, something Diabetic Investor can do and most analysts seem incapable of doing, analysts know next to nothing about how the diabetes drug market works for if they did they would not make these insane comments. Next thing you know these analysts will start saying the Chicago Cubs now down 2-0 to the LA Dodgers are a lock to make it back to the World Series, even though our best hitters aren’t hitting and our manager seems incapable of using his bullpen correctly. Sorry but these five-hour marathon games are getting to us and it doesn’t help when you lose these games which last forever.
So, our apologies for the duplicate posts and GO CUBS.