Eli Lilly and Company LLY shares fell 3.60% as Novo Nordisk’s oral Wegovy challenges obesity drug market.

Eli Lilly and Company (LLY) shares fell 3.596% in pre-market trading on January 6, 2026, signaling renewed investor caution amid intensifying competition in the obesity drug market. The decline followed Novo Nordisk’s recent launch of an oral version of its GLP-1 therapy Wegovy in the U.S., a strategic move that challenges Lilly’s dominance in the weight-loss sector.

The oral Wegovy pill, priced at $149–$299 per month, represents a convenience advantage over injectable treatments and expands access to patients hesitant about self-administered shots. Analysts highlight that Novo’s first-mover edge in oral GLP-1 therapies has already shifted market dynamics, with Lilly’s own oral candidate, orforglipron, still pending FDA approval. This regulatory delay amplifies near-term risks for Lilly as Novo’s rollout gains traction.

Broader pricing pressures and political interventions, such as the U.S. government’s “most-favoured-nation” pricing agreements with drugmakers, further complicate Lilly’s outlook. These agreements cap costs for Medicare beneficiaries and could compress margins for both companies as new oral therapies enter the market. While Lilly’s injectable Zepbound has driven strong prescription growth, the shift toward oral alternatives underscores the need for rapid execution to maintain market share in this high-stakes therapeutic category.

Industry observers note that the obesity drug market remains one of the fastest-growing segments in biopharma, with annual revenues expected to surpass $100 billion by 2030. In this environment, companies must not only innovate rapidly but also navigate an increasingly complex pricing and regulatory landscape. Investors are closely watching how Lilly adapts its strategy, particularly in response to Novo Nordisk’s aggressive product expansion and the evolving reimbursement framework in the U.S.