Novo Nordisk Stock Plunges 7.84% as Eli Lilly's Oral Weight Loss Drug Surges 14%

On April 18, 2025, Novo Nordisk's stock dropped by 7.84% in pre-market trading, marking a significant decline for the pharmaceutical giant.

Eli Lilly's oral weight loss drug, Orforglipron, has shown promising results in its phase three clinical trials, positioning itself as a potential alternative to injectable weight loss medications. The trial data indicates that Orforglipron can match or even surpass the weight loss efficacy of injectable GLP-1 drugs. Patients taking Orforglipron lost an average of 16 pounds, equivalent to 7.9% of their body weight, compared to Novo Nordisk's Ozempic, which resulted in approximately 6% weight loss for diabetic patients at its highest dose.

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 14% surge in Eli Lilly's stock during pre-market trading, while Novo Nordisk's stock has declined by nearly 6.8%.

Novo Nordisk has faced a series of setbacks recently. Earlier this month, Pfizer announced the discontinuation of its oral weight loss drug, Danuglipron, due to potential liver damage observed in clinical trials. Novo Nordisk has also seen its market value in Europe decline, following disappointing results from its weight loss drugs Wegovy and Ozempic, as well as its oral weight loss drug Monlunabant and another injectable drug, CagriSema.

BMO Capital has downgraded Novo Nordisk's target price and rating, citing the impact of Eli Lilly's tirezepatide on the market share of Novo Nordisk's weight loss and diabetes drugs. The firm reduced Novo Nordisk's target price from $105 to $64 and changed its rating from "outperform" to "market perform."