Eli Lilly Shares Fall Nearly 2% After Slight Gain

Eli Lilly's stock showed a slight increase during regular trading on May 7 but experienced a notable drop in after-hours trading, closing at $776.72 before falling to $762.00. The company's weight-loss drug, Zepbound, has been gaining significant market traction since its U.S. approval in late 2023, generating $4.9 billion in revenue in 2024 and challenging Novo Nordisk's leading product, Wegovy, which earned $8.2 billion. Novo Nordisk recently cut its 2025 sales and operating profit forecasts due to weaker-than-expected growth and rising competition from generic and compounded versions of Wegovy, which have impacted its market share. Despite holding 72% of the global GLP-1 weight-loss drug market, Novo's stock has declined over 22% this year amid increased competition and compounding pharmacy pressures, while Eli Lilly's stock remains relatively stable with a strong buy consensus and an average price target implying a 25% upside. Both companies are developing oral versions of their GLP-1 drugs, with Novo expecting FDA approval later this year and Eli Lilly's orforglipron anticipated next year, intensifying the competition in the obesity drug market. Investors will be closely monitoring the evolving dynamics between these pharmaceutical giants as Eli Lilly looks set to challenge Novo Nordisk's dominance.