Eli Lilly and Novo Nordisk Are Fine -- but These 2 Stocks Could Be an Even Better Way to Invest in the GLP-1 Boom
Don't sleep on these medical device leaders.
Overview
Demand for GLP-1 medicines is booming, as these drugs have proven highly effective at treating diabetes, obesity, and other conditions. Investors looking to capitalize on this may turn to the current leaders in the GLP-1 market: Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO). Both companies could be great picks to ride the GLP-1 tailwind over the medium term, but as competition grows in this niche, they may see declining market share and pricing power. There are other ways to profit from the GLP-1 boom that don't depend on picking whichever drugmaker will dominate it over the next five to 10 years. Let's consider two stocks that will cash in on this market no matter what: Becton, Dickinson and Company (NYSE: BDX) and Abbott Laboratories (NYSE: ABT).
Image source: Getty Images.
Becton, Dickinson is a medical device manufacturer. The company has a large product portfolio, many of which are used daily by healthcare facilities. Becton, Dickinson is benefiting from the GLP-1 boom thanks to its status as a leading supplier of devices -- such as prefillable syringes -- that pharmaceutical companies use to deliver these medicines to patients. Becton, Dickinson has seen soaring demand for this segment of its business. The company is doubling down. At the beginning of the year, Becton, Dickinson announced it would invest $110 million to expand its production capacity for prefillable syringes to support the rising demand for GLP-1 drugs. The company is well-positioned to ride this wave through the end of the decade and beyond.
Details
Source
Originally published at www.fool.com.