Eli Lilly Stock Surges 3% as Pfizer's Weight Loss Pill Fails, Ranking 20th in Market Volume

On April 14, 2025, Eli Lilly (LLY) saw a significant increase in its stock price, rising by 3.00% and marking its second consecutive day of gains, with a total increase of 4.64% over the past two days. The trading volume for the day was 25.96 billion, placing it 20th in the overall market rankings.

Eli Lilly's stock surge was driven by the news that its rival, Pfizer, has discontinued the development of its experimental weight loss pill, Danuglipron. This decision came after a patient experienced a liver injury during the drug's trial. Pfizer's move to halt the development of Danuglipron was based on a comprehensive review of all clinical data generated to date. Despite this setback, Pfizer remains committed to developing other weight loss medications.

The discontinuation of Pfizer's weight loss pill has created a favorable environment for Eli Lilly and Novo Nordisk, both of which dominate the market for weight loss medications administered via weekly injections. The companies are also in a race to develop a pill version of their weight loss drugs, which would be more convenient for consumers and potentially boost sales. Currently, the only oral GLP-1 drug approved by the FDA is Novo Nordisk's Rybelsus, primarily used to treat Type 2 Diabetes.

Analysts predict that the market for weight loss drugs could exceed $150 billion within a decade. This forecast, combined with Pfizer's withdrawal from the competition, has bolstered investor confidence in Eli Lilly's prospects. The company's stock has a consensus Strong Buy rating among analysts, with an average price target of $1,038.21, implying a 37.40% upside from current levels.