Merck Drops 3.08% as Novartis, Eli Lilly Surge in GLP-1 Market

On May 12, 2025, Merck's stock experienced a 3.08% drop in pre-market trading.

Merck's stock decline can be attributed to the intense competition in the GLP-1 market, where Novartis and Eli Lilly have made significant strides. Novartis' semaglutide, a key product, surpassed Merck's Keytruda in global sales for the first quarter of 2025. This shift in market leadership has raised concerns about Merck's ability to maintain its position in the pharmaceutical industry.

Novartis reported that semaglutide, which includes Ozempic, Rybelsus, and Wegovy, generated approximately $78.64 billion in sales for the first quarter of 2025. This figure surpassed Keytruda's sales of $72 billion, marking a significant milestone for Novartis. The success of semaglutide has been driven by its effectiveness in treating both diabetes and obesity, making it a formidable competitor in the GLP-1 market.

Eli Lilly's tirzepatide, another GLP-1 product, also showed strong performance. The company reported that tirzepatide, which includes Mounjaro and Zepbound, contributed $61.5 billion to its total revenue for the first quarter of 2025. This product has been particularly successful in the U.S. market, where it has gained a significant share of the prescription market.

The intense competition in the GLP-1 market is expected to continue, with both Novartis and Eli Lilly expanding their product portfolios and exploring new indications. Merck, on the other hand, will need to innovate and adapt to maintain its market share in the face of these challenges.