Intensifying Price War in Weight-Loss Drugs Hits Eli Lilly Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Escalating Price War: Novo Nordisk announced a price cut for its weight-loss drug Wegovy and related medications to $675, significantly down from over $1,000, effective January 1, 2027, which could pressure Eli Lilly's Zepbound sales.
- Market Reaction: Eli Lilly's stock fell nearly 2% following news of its competitor's price cuts, raising investor concerns about the company's revenue prospects in the weight-loss segment, despite its extensive product portfolio across various therapeutic areas.
- Zepbound Sales Contribution: Zepbound's sales more than doubled year-over-year in Q4 2025 to nearly $4.3 billion, accounting for 22% of Eli Lilly's total revenue, highlighting the drug's significance to the company's overall performance.
- Long-Term Outlook: Despite facing pricing competition, Eli Lilly's diversified product line and strong market position suggest that its stock remains a worthwhile investment, with analysts believing the company's future growth potential remains robust.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1058.560
Low
950.00
Averages
1192
High
1500
Current: 1058.560
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
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.
Eli Lilly's Financial Outlook Remains Strong Amid Market Concerns
- Market Resilience: Eli Lilly's leadership in the diabetes medication market allows it to maintain strong financial performance during economic downturns, with analysts predicting that demand for its medicines will remain largely unaffected despite growing concerns over a potential AI bubble burst.
- Innovative Pipeline: Eli Lilly's Zepbound (tirzepatide) leads the weight-loss drug market, and the company is expected to launch new anti-obesity products like orforglipron and retatrutide in the coming years, which will further solidify its market position and drive revenue growth.
- Diversified Development: Beyond its core therapeutic areas, Eli Lilly has a robust pipeline across oncology, immunology, and neuroscience, demonstrating a strategic focus on diversification that enhances its resilience against market fluctuations.
- Dividend Appeal: With a 103.5% increase in dividends over the past five years, Eli Lilly presents an attractive option for dividend-seeking investors, making it a compelling long-term hold even amidst potential market volatility.
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UK's MHRA Approval: The UK's Medicines and Healthcare products Regulatory Agency (MHRA) has approved the use of the drug Imunest for the treatment of breast cancer.
Imunest's Function: This drug is designed to enhance the immune response against breast cancer cells, potentially improving treatment outcomes for patients.
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ELI LILLY: FDA GRANTS LABEL EXPANSION FOR ZEPBOUND (TIRZEPATIDE) TO ALLOW FOUR-DOSE SINGLE-PATIENT KWIKPEN USE
FDA Approval: The FDA has approved an expansion of the label for Zepbound (tirzepatide).
New Indication: The updated label now includes four-dose single-patient use of the medication.
See More
Intensifying Price War in Weight-Loss Drugs Hits Eli Lilly Stock
- Escalating Price War: Novo Nordisk announced a price cut for its weight-loss drug Wegovy and related medications to $675, significantly down from over $1,000, effective January 1, 2027, which could pressure Eli Lilly's Zepbound sales.
- Market Reaction: Eli Lilly's stock fell nearly 2% following news of its competitor's price cuts, raising investor concerns about the company's revenue prospects in the weight-loss segment, despite its extensive product portfolio across various therapeutic areas.
- Zepbound Sales Contribution: Zepbound's sales more than doubled year-over-year in Q4 2025 to nearly $4.3 billion, accounting for 22% of Eli Lilly's total revenue, highlighting the drug's significance to the company's overall performance.
- Long-Term Outlook: Despite facing pricing competition, Eli Lilly's diversified product line and strong market position suggest that its stock remains a worthwhile investment, with analysts believing the company's future growth potential remains robust.
See More
Novo Nordisk Price Cuts Pressure Eli Lilly's Zepbound
- Intensifying Competition: Novo Nordisk announced price cuts for its weight-loss drug Wegovy and related medications to $675 per month, significantly down from over $1,000, directly pressuring Eli Lilly's Zepbound and potentially impacting its revenue.
- Market Reaction: Eli Lilly's stock fell nearly 2% following the news of its rival's price cuts, indicating investor concerns about its prospects in the weight-loss drug market, although the company maintains a robust portfolio across various therapeutic areas.
- Sales Contribution: Zepbound's sales more than doubled year-over-year in Q4 2025 to nearly $4.3 billion, accounting for 22% of Eli Lilly's total revenue, highlighting the drug's significance to the company's overall performance.
- Long-term Outlook: Despite facing pricing competition, analysts believe Eli Lilly's stock remains a worthwhile investment due to its extensive commercial and developmental product portfolio, which supports the company's long-term growth potential.
See More
Bank of America Maintains Buy Rating on Eli Lilly Amid Pricing Concerns
- Pricing Impact: Bank of America emphasizes that Novo Nordisk's price cuts do not imply a reduction in Eli Lilly's net pricing, as most demand for weight-loss drugs comes from cash-paying customers, suggesting limited impact on Eli Lilly's business.
- Market Reaction: Following Novo's announcement to slash prices on key obesity and diabetes treatments by up to 50%, shares of both Novo and Eli Lilly fell nearly 3% and 2% respectively, indicating market caution regarding the pricing changes.
- Investor Sentiment: While retail sentiment around Novo's stock remains in 'extremely bullish' territory on Stocktwits, sentiment for Eli Lilly trends towards 'neutral', reflecting investor caution about Eli Lilly's future performance amid rising competition.
- Product Competitive Advantage: Bloomberg analysts highlight Eli Lilly's weight-loss drugs as having a 'superior' edge, particularly as its experimental drug CagriSema failed to demonstrate non-inferiority to Eli Lilly's tirzepatide, further solidifying Eli Lilly's competitive position in the weight-loss market.
See More
Eli Lilly's Financial Outlook Remains Strong Amid Market Concerns
- Market Resilience: Eli Lilly's leadership in the diabetes medication market allows it to maintain strong financial performance during economic downturns, with analysts predicting that demand for its medicines will remain largely unaffected despite growing concerns over a potential AI bubble burst.
- Innovative Pipeline: Eli Lilly's Zepbound (tirzepatide) leads the weight-loss drug market, and the company is expected to launch new anti-obesity products like orforglipron and retatrutide in the coming years, which will further solidify its market position and drive revenue growth.
- Diversified Development: Beyond its core therapeutic areas, Eli Lilly has a robust pipeline across oncology, immunology, and neuroscience, demonstrating a strategic focus on diversification that enhances its resilience against market fluctuations.
- Dividend Appeal: With a 103.5% increase in dividends over the past five years, Eli Lilly presents an attractive option for dividend-seeking investors, making it a compelling long-term hold even amidst potential market volatility.
See More
UK's MHRA Grants Approval for Imlunestrant Tosylate (Inluriyo) as a Breast Cancer Treatment
UK's MHRA Approval: The UK's Medicines and Healthcare products Regulatory Agency (MHRA) has approved the use of the drug Imunest for the treatment of breast cancer.
Imunest's Function: This drug is designed to enhance the immune response against breast cancer cells, potentially improving treatment outcomes for patients.
See More
ELI LILLY: FDA GRANTS LABEL EXPANSION FOR ZEPBOUND (TIRZEPATIDE) TO ALLOW FOUR-DOSE SINGLE-PATIENT KWIKPEN USE
FDA Approval: The FDA has approved an expansion of the label for Zepbound (tirzepatide).
New Indication: The updated label now includes four-dose single-patient use of the medication.
See More
Intensifying Price War in Weight-Loss Drugs Hits Eli Lilly Stock
- Escalating Price War: Novo Nordisk announced a price cut for its weight-loss drug Wegovy and related medications to $675, significantly down from over $1,000, effective January 1, 2027, which could pressure Eli Lilly's Zepbound sales.
- Market Reaction: Eli Lilly's stock fell nearly 2% following news of its competitor's price cuts, raising investor concerns about the company's revenue prospects in the weight-loss segment, despite its extensive product portfolio across various therapeutic areas.
- Zepbound Sales Contribution: Zepbound's sales more than doubled year-over-year in Q4 2025 to nearly $4.3 billion, accounting for 22% of Eli Lilly's total revenue, highlighting the drug's significance to the company's overall performance.
- Long-Term Outlook: Despite facing pricing competition, Eli Lilly's diversified product line and strong market position suggest that its stock remains a worthwhile investment, with analysts believing the company's future growth potential remains robust.
See More
Novo Nordisk Price Cuts Pressure Eli Lilly's Zepbound
- Intensifying Competition: Novo Nordisk announced price cuts for its weight-loss drug Wegovy and related medications to $675 per month, significantly down from over $1,000, directly pressuring Eli Lilly's Zepbound and potentially impacting its revenue.
- Market Reaction: Eli Lilly's stock fell nearly 2% following the news of its rival's price cuts, indicating investor concerns about its prospects in the weight-loss drug market, although the company maintains a robust portfolio across various therapeutic areas.
- Sales Contribution: Zepbound's sales more than doubled year-over-year in Q4 2025 to nearly $4.3 billion, accounting for 22% of Eli Lilly's total revenue, highlighting the drug's significance to the company's overall performance.
- Long-term Outlook: Despite facing pricing competition, analysts believe Eli Lilly's stock remains a worthwhile investment due to its extensive commercial and developmental product portfolio, which supports the company's long-term growth potential.
See More
Bank of America Maintains Buy Rating on Eli Lilly Amid Pricing Concerns
- Pricing Impact: Bank of America emphasizes that Novo Nordisk's price cuts do not imply a reduction in Eli Lilly's net pricing, as most demand for weight-loss drugs comes from cash-paying customers, suggesting limited impact on Eli Lilly's business.
- Market Reaction: Following Novo's announcement to slash prices on key obesity and diabetes treatments by up to 50%, shares of both Novo and Eli Lilly fell nearly 3% and 2% respectively, indicating market caution regarding the pricing changes.
- Investor Sentiment: While retail sentiment around Novo's stock remains in 'extremely bullish' territory on Stocktwits, sentiment for Eli Lilly trends towards 'neutral', reflecting investor caution about Eli Lilly's future performance amid rising competition.
- Product Competitive Advantage: Bloomberg analysts highlight Eli Lilly's weight-loss drugs as having a 'superior' edge, particularly as its experimental drug CagriSema failed to demonstrate non-inferiority to Eli Lilly's tirzepatide, further solidifying Eli Lilly's competitive position in the weight-loss market.
See More
