BUZZ-Lilly rides weight-loss drug wave, set for eighth straight yearly gain

Weight loss drugmaker Eli Lilly's LLY.N shares have risen about 33% this year - set for the eighth successive year of gains

LLY, already the world's most valuable healthcare company, is set to add another $180 billion to its market cap this year

LLY's popular diabetes and weight loss drugs - Mounjaro and Zepbound - compete with Danish drugmaker Novo Nordisk's NOVOb.CO Ozempic and Wegovy in a market poised to be worth about $150 billion by the early 2030s

Demand for the drugs, collectively known as GLP-1 agonists, has outpaced supply for most of this year

But Novo stock has declined about 11% this year - set to break a five-year winning streak

Both LLY and Novo had what Wall Street termed a "soft Q3", with LLY posting Mounjaro and Zepbound revenues below analyst expectations

BMO Capital Markets analysts believe LLY and Novo should expand manufacturing and push for more scrutiny of compounded pharmacies to maintain growth

" ... both Lilly and Novo will need to engage in more targeted sales campaigns to engage patients who are not first adopters," BMO analysts say

Tema Obesity and Cardiometabolic ETF HRTS.O - which includes both Lilly and Novo - has declined 5% this year

(Reporting by Bhanvi Satija in Bengaluru)

((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))