AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Novo Nordisk Stock Down on Rival's Weight Loss Pill Approval
ByAinvest
Tuesday, Aug 26, 2025 8:17 pm ET1min read
Novo Nordisk stock fell 2.59% on Tuesday due to rival Eli Lilly's announcement of positive results for its weight loss pill, orforglipron. Novo Nordisk's Wegovy, a popular weight loss medication, is only available via injection and a pill version is still awaiting approval. The two companies are vying for approval from the FDA to reach a larger patient base. Analysts' consensus rating for Novo Nordisk is Moderate Buy with an average price target of $67.86, representing a 23.65% upside.
Eli Lilly (LLY) announced on Tuesday that its investigational weight-loss pill, orforglipron, achieved significant results in a Phase 3 trial, setting the stage for global regulatory submissions. The drug demonstrated "significant" weight loss and "meaningful" reductions in average blood sugar levels, or A1C, meeting primary and key secondary endpoints after 72 weeks [1].At the highest dose of 36 milligrams, participants lost an average of 22.9 pounds, representing a 10.5% reduction in body weight compared to a 2.2% drop among those who took a placebo. This positive data has prompted Eli Lilly to accelerate its regulatory submission process to meet the needs of patients awaiting treatment [1].
Eli Lilly's stock surged 4.6% on Tuesday, reflecting investor optimism following the trial results. The company is positioned to offer a convenient, once-daily oral treatment that can be scaled globally, potentially redefining how obesity is treated worldwide [1].
Novo Nordisk (NVO), a rival in the weight-loss market, saw its stock fall 2.59% on Tuesday. Novo Nordisk's Wegovy, currently available via injection, is awaiting approval for a pill version. The competition from Eli Lilly's orforglipron could impact Novo Nordisk's market share and patient base [1].
Analysts' consensus rating for Novo Nordisk remains a Moderate Buy with an average price target of $67.86, representing a 23.65% upside [2]. The approval of Eli Lilly's oral weight-loss pill could create a more segmented obesity market, driven by patient characteristics, weight loss needs, and tolerance to specific therapies [1].
References:
[1] https://finance.yahoo.com/news/eli-lilly-apos-latest-weight-164720886.html
[2] https://seekingalpha.com/news/4489112-eli-lilly-posts-phase-3-trial-win-obesity-pill
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet