Novo Nordisk Plunges 7.84% as Eli Lilly's Orforglipron Surges

On April 18, 2025, Novo Nordisk's stock experienced a significant drop of 7.84% in pre-market trading, reflecting the intense competition and market dynamics in the pharmaceutical industry.

Eli Lilly's oral weight-loss drug, Orforglipron, has shown promising results in its phase three clinical trials, positioning itself as a potential alternative to injectable GLP-1 drugs. The trial data indicates that Orforglipron can achieve weight loss comparable to or even surpassing that of injectable GLP-1 medications. Patients taking Orforglipron lost an average of 16 pounds, or 7.9% of their body weight, while Novo Nordisk's Ozempic, at its highest dose, resulted in approximately 6% weight loss for diabetic patients.

In addition to weight loss, Orforglipron also demonstrated a reduction in blood sugar levels by an average of 1.3%, compared to Ozempic's 2.1%. This development has sparked concerns among investors about the competitive landscape for Novo Nordisk, particularly given the recent setbacks faced by the company.

Novo Nordisk has encountered a series of challenges, including disappointing results from its mid-stage trial for the oral weight-loss drug monlunabant and subpar data from its injectable drug CagriSema. These issues, combined with the strong performance of Eli Lilly's Orforglipron, have contributed to the downward pressure on Novo Nordisk's stock.

BMO Capital Markets has also lowered its target price and rating for Novo Nordisk, citing the erosion of market share for its semaglutide-based drugs due to the rapid market penetration of Eli Lilly's tirezepatide. This downgrade further underscores the competitive pressures facing Novo Nordisk in the weight-loss and diabetes drug markets.