KEY DETAILS
Jim Cramer's ranking from earlier this week put J&J first, Lilly second and Pfizer third, citing J&J's AAA balance sheet.
In STEP Young, released Sept. 7, 40.4% of children aged 6 to 11 on semaglutide moved out of the obesity range by week 68, versus none on placebo.
China has approved Wegovy as the first GLP-1 drug for treating MASH, a liver disease, opening a substantial new market.
Amgen's six main growth products grew 26% in the second quarter and now make up nearly 70% of its product sales; it also pointed to IMDELLTRA and its newer drugs.
Morgan Stanley's downgrade over the coming semaglutide patent cliff sent Novo Nordisk shares lower the same day.
Novo said on Sept. 10 that China approved Wegovy as the first GLP-1 drug cleared to treat MASH, a serious liver disease, opening a new market even as the company's stock slid at home. Morgan Stanley downgraded Novo Nordisk over the coming patent cliff facing semaglutide, and investors responded fast. Jim Cramer said earlier this week that he favors Johnson & Johnson over Eli Lilly and Pfizer among healthcare stocks, while Amgen laid out its own growth case built on newer drugs. It was a day that touched the science and the money behind these medicines.
Earlier this week, as we reported on September 9, Jim Cramer ranked Johnson & Johnson first, Lilly second and Pfizer third, citing J&J's AAA balance sheet and 18 drugs with no patent expiry problems. For investors who have leaned heavily into GLP-1 names, that is a reminder that the obesity drug boom has not lifted every healthcare stock the same way. Lilly and Pfizer still carry real exposure to this market, but Cramer's preference suggests some fund managers are looking for steadier bets as the field matures. His comments do not change the underlying science, but they do shape how money moves toward these companies in the near term.
Novo Nordisk's STEP Young data, released Sept. 7 and covered here on September 8, showed that 40.4% of children aged 6 to 11 on semaglutide moved out of the obesity range by week 68, versus none on placebo, a result the company is presenting as evidence its drug can help younger patients, not just adults. Pediatric obesity treatment has moved more slowly than the adult market, in part because regulators require longer safety follow-up for children, so this figure gives Novo something concrete to bring to future approval discussions. Parents and physicians weighing options for children with obesity now have another data point to consider, though the company has not yet said when or whether it will seek a specific pediatric indication tied to this number. The result also underscores how much of Novo's current strategy depends on expanding semaglutide's approved uses beyond the adult weight loss market that made it famous.
That same strategy of expanding semaglutide's approved uses reached China, where, Novo said on Sept. 10, regulators cleared Wegovy as the first GLP-1 drug approved there for MASH, a liver disease linked to obesity and metabolic dysfunction. The approval opens a substantial new market for Novo Nordisk, since MASH affects a growing share of patients in China as obesity rates have risen there. It also reinforces semaglutide's reputation as a drug with effects that reach beyond weight loss alone, touching organs like the liver in ways that matter to patients with more advanced metabolic disease. For Novo, the timing matters too, since this approval offers a new growth avenue right as the company faces pressure elsewhere in its business.
While Novo Nordisk works to expand semaglutide's footprint, Amgen used today's disclosures to make its own growth case, noting that its six main growth products grew 26% in the second quarter and now make up nearly 70% of its product sales. The company highlighted IMDELLTRA, a cancer treatment gaining momentum, alongside MariTide, its own obesity drug candidate still working through development. Amgen's message was straightforward: unlike some peers facing patent pressure, it has multiple products it expects to carry growth over the next several years. For a company competing in the same obesity drug market as Novo and Lilly, that message also serves as reassurance to investors that MariTide is not its only path forward.
That contrast, other companies naming several growth paths while Novo works to build support for MASH and pediatric approvals, ties directly to why Morgan Stanley downgraded Novo Nordisk today. The firm's analysts flagged the coming patent cliff for semaglutide as the year approaches when competitors gain the ability to launch cheaper generic versions of the drug. Novo Nordisk shares dropped on the news, reflecting investor concern that the company's core revenue driver faces a firm expiration date, even as it works to expand into new markets like China's MASH treatment approvals. The downgrade does not erase Novo's recent wins, but it does put a clock on how much time the company has to convert this global expansion into lasting revenue.
Taken together, today's developments point to a simple reality: Novo Nordisk is racing to open new markets and prove new uses for semaglutide at the same time analysts are counting down to when its exclusivity ends. If you hold Novo Nordisk stock, it may be worth watching how quickly the MASH approval in China and the pediatric BMI data translate into new revenue lines, since that is likely what will offset the patent cliff Morgan Stanley flagged. If you are weighing healthcare stocks more broadly, Cramer's preference for J&J and Amgen's own growth pitch are worth factoring in alongside Lilly and Pfizer, rather than assuming every company in this market carries the same risk profile. Talk to a financial advisor before making decisions based on any single analyst call or company disclosure.
Originally published on GLP-1 Nation.
Every Sunday, the weekly newsletter pulls the full week together: the news from GLP-1 Nation, the access updates from GLP1Laws, the latest GLP-1 Studio podcast episodes, and what changed in the Cozy Butter community.