Novo Nordisk Plunges 7.84% as Eli Lilly's Drug Surges

On April 18, 2025, Novo Nordisk's stock experienced a significant drop of 7.84% in pre-market trading, reflecting investor concerns over the company's competitive position in the weight loss and diabetes drug market.

One of the primary factors contributing to this decline is the impressive performance of Eli Lilly's oral weight loss drug, Orforglipron, in its phase three clinical trials. The drug demonstrated superior weight loss results compared to Novo Nordisk's flagship product, Ozempic. Patients taking Orforglipron lost an average of 16 pounds, or 7.9% of their body weight, while those on the highest dose of Ozempic lost only about 6% of their body weight. This has raised concerns about the competitive edge of Novo Nordisk's products in the market.

Additionally, Novo Nordisk has faced a series of setbacks in recent months. The company's weight loss drugs Wegovy and Ozempic have seen lower-than-expected demand, and the mid-stage trial results for its oral weight loss drug, monlunabant, were disappointing. Furthermore, another injectable drug in development, CagriSema, showed subpar data performance. These challenges have put Novo Nordisk under significant pressure, leading to a loss of market value and investor confidence.

BMO Capital Markets recently downgraded Novo Nordisk's target price and rating, citing the erosion of its market share due to competition from Eli Lilly's tirezepatide. This move further underscores the challenges Novo Nordisk is facing in maintaining its leadership position in the diabetes and weight loss drug market.