Novo Nordisk (NVO) 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 investor concerns and market dynamics.

Eli Lilly's oral weight-loss drug, Orforglipron, has shown promising results in its Phase 3 clinical trials, potentially posing a significant threat to Novo Nordisk's market dominance. The drug demonstrated comparable or even superior weight loss effects to Novo Nordisk's injectable GLP-1 medications, with patients losing an average of 16 pounds, or 7.9% of their body weight. In contrast, Novo Nordisk's Ozempic, at its highest dose, resulted in a 6% weight loss for diabetic patients.

Additionally, Orforglipron reduced blood sugar levels by an average of 1.3%, while Ozempic achieved a 2.1% reduction. This news has led to a surge in Eli Lilly's stock, while Novo Nordisk's stock has declined.

Novo Nordisk has faced a series of setbacks recently, including disappointing results from its mid-stage trial for the oral weight-loss drug monlunabant and subpar data from its investigational injectable drug CagriSema. These challenges, combined with the strong performance of Eli Lilly's Orforglipron, have put Novo Nordisk under increased pressure.

BMO Capital Markets has also downgraded Novo Nordisk's target price and rating, citing the erosion of its market share due to the competitive threat posed by Eli Lilly's tirzepatide. This downgrade further reflects the market's concerns about Novo Nordisk's ability to maintain its leadership position in the weight-loss and diabetes drug market.