Eli Lilly falls after Danish rival Novo cuts annual sales growth forecast

Shares of U.S. drugmaker Eli Lilly LLY.N decline ~3% to $784 before the bell

Danish rival Novo Nordisk NOVOb.CO cuts full-year sales and operating profit forecasts for the second time this year

Novo said it was lowering its growth expectations for obesity drug Wegovy in the U.S. market, hurt by persistent use of compounded or customized versions of the drug, slower-than-expected market expansion and competition

Lilly's obesity drug Zepbound competes with Novo's Wegovy in the U.S. market

Novo now expects 8% to 14% sales growth and operating profit growth of 10% to 16% at constant currency for 2025, compared with previous expectations of 13%-21% sales growth and operating profit growth of 16% to 24%

Novo's Copenhagen-listed shares fell 15%, while U.S.-listed shares declined 15% to $58.49 premarket

Novo and Lilly are expected to report their second-quarter results next week

As of last close, LLY up ~5% and Novo down over 30% YTD