ETFs in Focus on Eli Lilly's Solid Q2 Earnings, Weak Obesity Data
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2025
0mins
Source: NASDAQ.COM
Eli Lilly's Q2 Performance: Eli Lilly reported strong second-quarter results for 2025, exceeding earnings and revenue estimates due to high demand for its diabetes and weight-loss drugs, leading to an increased full-year outlook. However, shares fell 14% following disappointing data on a new weight-loss pill, orforglipron.
ETF Investment Opportunities: Investors looking to capitalize on Eli Lilly's performance can consider various ETFs with significant exposure to the company, including iShares U.S. Pharmaceuticals ETF, VanEck Vectors Pharmaceutical ETF, and Roundhill GLP-1 & Weight Loss ETF, among others.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 43.550
Low
42.00
Averages
54.67
High
70.00
Current: 43.550
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hims & Hers Partners with Novo Nordisk, Boosting Stock Momentum
- Growth Through Partnership: Novo Nordisk announced on March 9 that it will sell its blockbuster drugs Wegovy and Ozempic through Hims & Hers, with Barclays noting improved customer momentum, indicating a positive impact from the collaboration.
- Price Target Increase: Barclays raised its price target for Hims & Hers from $29 to $39, implying a 21% upside from the last closing price, reflecting increased confidence in the company's future growth trajectory.
- Revenue Acceleration Expectations: Revenue and EBITDA for Hims & Hers are expected to significantly accelerate in the second half of 2026 due to strong demand for weight-loss products and contributions from other business lines, further solidifying its market position.
- Market Sentiment Rebound: Retail sentiment for Hims & Hers improved from 'bullish' to 'extremely bullish', with message activity rising over 120% in the past week, indicating investor optimism regarding the company's outlook.
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Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
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Novo Nordisk to File for Wegovy Approval in China Soon
- Market Expansion Plans: Novo Nordisk's CEO Mike Doustdar announced that the company will submit its Wegovy weight-loss pill for regulatory approval in China within a few months, indicating its intent to expand in the world's second-largest market and compete with Eli Lilly's orforglipron.
- Product Launch Context: Wegovy was launched in the U.S. earlier this year after receiving FDA approval in December, and Novo Nordisk aims to mitigate potential impacts on its GLP-1 franchise from the upcoming patent expiry of semaglutide, the active ingredient in its diabetes therapies, by introducing Wegovy in China.
- Competitive Advantage Analysis: Doustdar noted that one barrier to entry for Wegovy will be the scaling of production capabilities, suggesting that not many competitors will have the necessary capacity, which could provide Novo Nordisk with a strategic edge in the Chinese market.
- Industry Dynamics Observation: Eli Lilly submitted its marketing application for its oral GLP-1 therapy orforglipron to Chinese regulators at the end of last year, highlighting the intensifying competition in this sector, and Novo Nordisk's timely application will help position it effectively in the market.
See More
FDA Issues Warning Letters to Telehealth Firms Over Misleading GLP-1 Claims
- Warning Letter Count: The FDA has issued 25 warning letters to telehealth firms for allegedly making false claims about low-cost compounded GLP-1 drugs, indicating the regulator's stringent oversight of the market.
- Product Safety Concerns: The FDA emphasized that these compounded drugs have not been proven safe or effective compared to FDA-approved GLP-1 medications from Novo Nordisk (NVO) and Eli Lilly (LLY), posing potential health risks to consumers and highlighting the importance of consumer protection.
- Market Reaction: Compounded GLP-1 drugs surged in popularity due to shortages of branded medications, with the FDA sending over 100 warning letters to telehealth firms, including Hims & Hers (HIMS), demonstrating a zero-tolerance approach to misleading marketing.
- Industry Impact: Following a deal with Novo Nordisk, HIMS ceased marketing its compounded GLP-1 drugs in favor of branded options, reflecting a growing emphasis on compliance and consumer trust, which may influence future market strategies.
See More
Analysis of Weight Loss Drug Market Prospects
- Market Growth Potential: Analysts project rapid growth in the weight loss market over the coming years, with Eli Lilly and Novo Nordisk as industry leaders, showing a stark contrast in performance with Eli Lilly's 40% stock increase and Novo Nordisk's 42% decline over the past year, highlighting intense market competition.
- Eli Lilly's Advantages: Eli Lilly's weight loss drug Zepbound is currently the best-seller in this niche, with Q1 revenue soaring 56% year-over-year to $19.8 billion and EPS skyrocketing 170% to $8.26, underscoring its strong market position in chronic weight management.
- Novo Nordisk's Catch-Up: Novo Nordisk's oral GLP-1 drug Wegovy has achieved over two million prescriptions in Q1, and while facing competitive pressure from Eli Lilly, the approval of a high-dose Wegovy formulation could enhance its competitive edge.
- Investment Value Comparison: Although Novo Nordisk's forward P/E of 13 appears more attractive than Eli Lilly's 31.3, Eli Lilly's dominance in the weight loss sector and diversified portfolio make it a more compelling investment choice at this time.
See More
Eli Lilly and Novo Nordisk Compete in Weight Loss Market
- Market Leadership: Eli Lilly leads the weight loss market with a remarkable 56% year-over-year revenue increase to $19.8 billion in Q1, while its EPS soared 170% to $8.26, showcasing its strong performance in chronic weight management and solidifying its market share.
- Product Line Expansion: Eli Lilly's weight loss drug Zepbound has become the best-seller in this niche, and the newly approved oral GLP-1 therapy Foundayo is attracting patients hesitant about injectable drugs, which is expected to expand its addressable market and enhance its customer base.
- Changing Competitive Dynamics: Novo Nordisk is regaining competitiveness in the weight loss market, with its oral Wegovy achieving over two million prescriptions since launch, and the newly approved high-dose Wegovy is likely to enhance its market share, helping it compete with Eli Lilly's Zepbound.
- Future Potential: Although Novo Nordisk's forward P/E of 13 appears more attractive than Eli Lilly's 31.3, Eli Lilly is still viewed as the more valuable investment due to its diversified product portfolio and dominant position in the weight loss sector.
See More
Hims & Hers Partners with Novo Nordisk, Boosting Stock Momentum
- Growth Through Partnership: Novo Nordisk announced on March 9 that it will sell its blockbuster drugs Wegovy and Ozempic through Hims & Hers, with Barclays noting improved customer momentum, indicating a positive impact from the collaboration.
- Price Target Increase: Barclays raised its price target for Hims & Hers from $29 to $39, implying a 21% upside from the last closing price, reflecting increased confidence in the company's future growth trajectory.
- Revenue Acceleration Expectations: Revenue and EBITDA for Hims & Hers are expected to significantly accelerate in the second half of 2026 due to strong demand for weight-loss products and contributions from other business lines, further solidifying its market position.
- Market Sentiment Rebound: Retail sentiment for Hims & Hers improved from 'bullish' to 'extremely bullish', with message activity rising over 120% in the past week, indicating investor optimism regarding the company's outlook.
See More
Recap of CNBC Investing Club Monthly Meeting
- Portfolio Analysis: During the June Monthly Meeting, Jim Cramer and Jeff Marks provided an in-depth analysis of 35 portfolio stocks, highlighting their preference for Intel due to its significant upside potential in data center CPU growth, particularly in the context of competition with TSMC.
- Tech Giants Restructuring: Cramer noted a reordering of the 'Magnificent Seven,' with newcomers like SpaceX and the yet-to-go-public Anthropic and OpenAI emerging as formidable competitors, indicating intensified market competition, especially in the AI sector.
- Strengths of Alphabet and Apple: Alphabet is positioned advantageously in the AI era with its YouTube and Waymo businesses, while Apple leverages its ecosystem of over 2.5 billion iPhone users to strengthen its AI partnership with Alphabet, showcasing both companies' robust market positions.
- Market Dynamics and Investment Strategy: Despite challenges faced by Meta and Microsoft, Cramer advises maintaining investments in Amazon and Nvidia, believing that the latter's GPU demand will continue to grow, and that Amazon's cloud business remains highly profitable.
See More
Novo Nordisk to File for Wegovy Approval in China Soon
- Market Expansion Plans: Novo Nordisk's CEO Mike Doustdar announced that the company will submit its Wegovy weight-loss pill for regulatory approval in China within a few months, indicating its intent to expand in the world's second-largest market and compete with Eli Lilly's orforglipron.
- Product Launch Context: Wegovy was launched in the U.S. earlier this year after receiving FDA approval in December, and Novo Nordisk aims to mitigate potential impacts on its GLP-1 franchise from the upcoming patent expiry of semaglutide, the active ingredient in its diabetes therapies, by introducing Wegovy in China.
- Competitive Advantage Analysis: Doustdar noted that one barrier to entry for Wegovy will be the scaling of production capabilities, suggesting that not many competitors will have the necessary capacity, which could provide Novo Nordisk with a strategic edge in the Chinese market.
- Industry Dynamics Observation: Eli Lilly submitted its marketing application for its oral GLP-1 therapy orforglipron to Chinese regulators at the end of last year, highlighting the intensifying competition in this sector, and Novo Nordisk's timely application will help position it effectively in the market.
See More
FDA Issues Warning Letters to Telehealth Firms Over Misleading GLP-1 Claims
- Warning Letter Count: The FDA has issued 25 warning letters to telehealth firms for allegedly making false claims about low-cost compounded GLP-1 drugs, indicating the regulator's stringent oversight of the market.
- Product Safety Concerns: The FDA emphasized that these compounded drugs have not been proven safe or effective compared to FDA-approved GLP-1 medications from Novo Nordisk (NVO) and Eli Lilly (LLY), posing potential health risks to consumers and highlighting the importance of consumer protection.
- Market Reaction: Compounded GLP-1 drugs surged in popularity due to shortages of branded medications, with the FDA sending over 100 warning letters to telehealth firms, including Hims & Hers (HIMS), demonstrating a zero-tolerance approach to misleading marketing.
- Industry Impact: Following a deal with Novo Nordisk, HIMS ceased marketing its compounded GLP-1 drugs in favor of branded options, reflecting a growing emphasis on compliance and consumer trust, which may influence future market strategies.
See More
Analysis of Weight Loss Drug Market Prospects
- Market Growth Potential: Analysts project rapid growth in the weight loss market over the coming years, with Eli Lilly and Novo Nordisk as industry leaders, showing a stark contrast in performance with Eli Lilly's 40% stock increase and Novo Nordisk's 42% decline over the past year, highlighting intense market competition.
- Eli Lilly's Advantages: Eli Lilly's weight loss drug Zepbound is currently the best-seller in this niche, with Q1 revenue soaring 56% year-over-year to $19.8 billion and EPS skyrocketing 170% to $8.26, underscoring its strong market position in chronic weight management.
- Novo Nordisk's Catch-Up: Novo Nordisk's oral GLP-1 drug Wegovy has achieved over two million prescriptions in Q1, and while facing competitive pressure from Eli Lilly, the approval of a high-dose Wegovy formulation could enhance its competitive edge.
- Investment Value Comparison: Although Novo Nordisk's forward P/E of 13 appears more attractive than Eli Lilly's 31.3, Eli Lilly's dominance in the weight loss sector and diversified portfolio make it a more compelling investment choice at this time.
See More
Eli Lilly and Novo Nordisk Compete in Weight Loss Market
- Market Leadership: Eli Lilly leads the weight loss market with a remarkable 56% year-over-year revenue increase to $19.8 billion in Q1, while its EPS soared 170% to $8.26, showcasing its strong performance in chronic weight management and solidifying its market share.
- Product Line Expansion: Eli Lilly's weight loss drug Zepbound has become the best-seller in this niche, and the newly approved oral GLP-1 therapy Foundayo is attracting patients hesitant about injectable drugs, which is expected to expand its addressable market and enhance its customer base.
- Changing Competitive Dynamics: Novo Nordisk is regaining competitiveness in the weight loss market, with its oral Wegovy achieving over two million prescriptions since launch, and the newly approved high-dose Wegovy is likely to enhance its market share, helping it compete with Eli Lilly's Zepbound.
- Future Potential: Although Novo Nordisk's forward P/E of 13 appears more attractive than Eli Lilly's 31.3, Eli Lilly is still viewed as the more valuable investment due to its diversified product portfolio and dominant position in the weight loss sector.
See More
