Eli Lilly's $8.96 Billion Trade Ranks Sixth as 2.37% Drop Follows Disappointing Obesity Drug Data

On August 8, 2025, Eli Lilly (LLY) traded with a volume of $8.96 billion, a 46.85% decline from the prior day, ranking it sixth in trading volume. The stock closed down 2.37%, reflecting heightened market sensitivity following recent developments.

Eli Lilly’s second-quarter earnings report, released on August 7, showed revenue rising 38% year-on-year to $15.6 billion, surpassing analyst expectations. However, the stock plummeted after the announcement due to underwhelming clinical trial results for its obesity drug orforglipron. The trial revealed that patients on the highest dose lost only 12% of body weight, below expectations for a drug competing with its own GLP-1 therapy Zepbound, which achieves over 25% weight loss. The mixed signals—strong earnings but weaker-than-expected drug data—triggered investor caution, exacerbating the sell-off.

The selloff has positioned Eli Lilly for its worst annual performance since the 2008 financial crisis. The stock’s 17% decline in 2025 marks its steepest drop since 2016 and contrasts sharply with its historically high valuation, which had traded at over 60 times earnings. Analysts note that the market’s reaction underscores the risks of high expectations for growth-driven pharmaceutical stocks. While the company remains a leader in GLP-1 therapeutics and has diversified its pipeline with recent acquisitions and partnerships, the orforglipron results have raised concerns about the sustainability of its growth trajectory.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day showed a 166.71% return from 2022 to the present, outperforming the S&P 500’s 29.18% benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly for high-liquidity stocks like Eli Lilly, which saw amplified price swings despite declining volume on August 8.