Eli Lilly Stock Drops 14% After Mixed Weight-Loss Pill Trial Results

Eli Lilly reported strong second quarter results for 2025, with revenue rising 37.6% year-over-year to $15.56 billion, exceeding Wall Street expectations, and raised its full-year revenue guidance to $61 billion. Despite this, shares plunged over 14% following late-stage trial results for its oral weight-loss drug, Orforglipron, which showed an average weight loss of 12.4% at the highest dose, falling short of the anticipated 15%. Analysts remain divided: while Leerink downgraded Eli Lilly citing increased GLP-1 competition and lowered long-term projections, Bank of America views the sell-off as an overreaction and sees Eli Lilly as well-positioned in the obesity market. Goldman Sachs analyst Asad Haider also called the market response excessive, emphasizing the drug's commercial viability due to its strong tolerability and scalability, especially internationally. The obesity market is seen as vast and underpenetrated, with GLP-1 drugs currently reaching only 3% of the U.S. market but projected to grow significantly. Overall, Eli Lilly's robust earnings and the promising, though slightly below expectations, weight-loss data keep it in a strong position within the pharmaceutical and obesity treatment sectors.