Eli Lilly Stocks Hit 9-Day Decline Amid $6 Billion Alabama Expansion and Weight-Loss Drug Gold Rush

Eli Lilly is at the center of a major shift in the pharmaceutical industry, but the past nine days have been a rocky ride for shareholders. Despite a $6 billion investment in a new U.S. manufacturing plant and a robust pipeline of obesity and diabetes drugs, , , 2025. This divergence between strategic moves and share price performance has investors asking: What’s driving the stock lower — and what does it mean for the future of one of the most important drugmakers in the world right now? According to market analysis, despite strong fundamentals. According to reports, Lilly is investing in a new facility in Huntsville, Alabama. The stock has declined for nine days despite and a strong pipeline. Market data shows that the weight-loss drug market is growing rapidly.

Strategic Expansion, Strong Pipeline, and a Changing Market

Eli Lilly's recent headlines are dominated by two key themes: manufacturing expansion and leadership in the fast-growing weight-loss drug market. According to reports, the company announced a $6 billion investment in a new manufacturing facility in Huntsville, Alabama, which will produce small-molecule and peptide medicines, including its oral GLP-1 obesity drug candidate, orforglipron. The plant, , will create 3,000 construction jobs and 450 permanent positions. The facility will use advanced AI and digital tools to support production. Lilly's pipeline is equally compelling. Its FDA-approved obesity drug Zepbound is a top seller, and forglipron is nearing regulatory approval. Meanwhile, the company is also advancing Retatrutide and Eloralinitide, and it plans to submit orforglipron for regulatory approval by the end of 2025. Market data shows that the weight-loss drug market is growing rapidly.

The Weight-Loss Drug Market: Where Eli Lilly Leads

, driven largely by GLP-1 and GIP drugs. According to market analysis, Lilly is already outpacing Novo Nordisk, the previous market leader. In Q3 2025, Zepbound generated $3.6 billion in sales — an 185% increase year-over-year — while Wegovy and Ozempic, Novo's top products, , respectively. in the U.S., compared to Novo's 41.7%. That's not just a market share edge — it's a sign that physicians and patients are responding more strongly to Lilly's product lineup. And with orforglipron expected to hit the market soon as an oral option, Lilly is positioning itself to capture an even larger share of a market that's expanding rapidly.

Still, the competition is fierce. Structure Therapeutics' trial results . The drug's performance has raised concerns about Lilly's market position.

Share Price Pressure and Market Realities

Despite the long-term optimism, Eli Lilly's stock has fallen for nine consecutive days. That's unusual for a company with such a strong pipeline and market position. The question is: Why now? One possible reason is market expectations. Analysts and investors might have been expecting stronger-than-anticipated news, and when the stock doesn't immediately reflect those hopes, the result can be a short-term sell-off.

Additionally, while the Alabama plant is a significant investment, it's also a multi-year project. The benefits of increased domestic production and reduced supply chain risks won't materialize overnight. And while Lilly continues to outperform Novo Nordisk in sales and prescriptions, the broader market might be taking a cautious approach as it weighs the long-term sustainability of this growth.

On the other hand, Novo Nordisk is not standing still. The company is advancing its oral semaglutide version of Wegovy and plans to submit CargiSema for approval in early 2026. Meanwhile, Novo is also grappling with weak clinical results in its Alzheimer's drug trials and pricing pressures from global markets. Market analysis shows that Novo's competitive position is under pressure.

Looking Ahead: What This Means for Investors

For long-term investors, Eli Lilly appears to be a compelling story. The company is not only leading the current obesity drug market but also investing in the infrastructure and products that will shape the next phase of the industry. Its GLP-1 and GIP-based drugs are already transforming how weight loss and diabetes are treated — and with oral alternatives like orforglipron on the horizon, the market is poised to expand even further.

However, there are risks. First, the stock's recent decline suggests that markets are still evaluating the company's long-term value. If the share price continues to fall despite the strong fundamentals, it could indicate broader market concerns or short-term profit-taking. Second, while Lilly is winning now, it's not immune to competition. Structure Therapeutics and other rivals are emerging, and Novo Nordisk is likely to respond with new products and strategies.

In the near term, the inclusion of Mounjaro in China's health insurance scheme is a major win. Starting January 1, 2026, the drug will be covered for type 2 diabetes patients in the country. Given that Mounjaro is also marketed for obesity and obstructive sleep apnea, the expanded reimbursement is likely to boost sales and reinforce Lilly's global reach. Market data shows that Lilly's market position is strong.

At the end of the day, Eli Lilly is well-positioned for a market that is only going to get bigger. But like all high-growth companies, it's subject to market sentiment and competitive pressures. For now, the focus is on whether the recent share price decline represents a buying opportunity — or a warning sign. Either way, the company is making moves that could shape the future of obesity treatment for years to come.