Eli Lilly Drops 4.34% as Novo Nordisk's Warning Shakes Weight Loss Drug Market

On July 29, 2025, Eli Lilly's stock experienced a significant drop of 4.34% in pre-market trading, reflecting investor concerns and market sentiment.

One of the key factors contributing to the decline in Eli Lilly's stock price is the recent downward revision of sales and profit growth forecasts by Novo Nordisk, a major competitor in the weight loss drug market. Novo Nordisk's warning about lower-than-expected growth for 2025 has raised concerns about the overall market dynamics for weight loss medications, which could impact Eli Lilly's performance in this sector.

Additionally, Eli Lilly's stock has been influenced by the shifting preferences of patients towards Zepbound, a weight loss drug produced by the company. The increasing demand for Zepbound, driven by its effectiveness and fewer side effects compared to other treatments, has led to coverage restrictions by CVS Caremark. This shift in patient preferences and coverage policies could affect Eli Lilly's sales and revenue projections, contributing to the stock's decline.

Despite these challenges, Eli Lilly has received positive news regarding its Alzheimer's drug, Kisunla. The European Medicines Agency (EMA) has given a positive recommendation for Kisunla, reversing an initial rejection. This approval could boost Eli Lilly's revenue from Alzheimer's treatments and enhance its market position in this competitive sector.

Furthermore, Eli Lilly's upcoming financial results for the second quarter of 2025, scheduled to be released on August 7, 2025, are expected to provide insights into the company's growth and market position. Investors will be closely monitoring these results to gauge the company's performance and future prospects.