Eli Lilly Sinks 12% Pre-Market on Disappointing Obesity Pill Data

TradingKey - Eli Lilly (LLY), the pharmaceutical giant, experienced a significant 12% drop in its pre-market stock price on Thursday, marking the largest single-day decline for the company in 26 years. This sell-off was triggered by the release of late-stage trial data for its obesity pill Orforglipron, which showed an average weight reduction of 11.2%, falling short of Wall Street analysts' expectations of around 15%.

Some physicians have noted that while the effectiveness of Lilly's obesity pill is comparable to Novo Nordisk's Wegovy, it is generally perceived as slightly less effective.

On the same Thursday, Eli Lilly reported its second-quarter earnings, revealing a revenue of $15.56 billion, surpassing the anticipated $14.7 billion. The sales figures for its weight-loss medication Zepbound and diabetes drug Mounjaro both exceeded expectations.

In response to strong demand for its weight-loss and diabetes treatments, Eli Lilly has raised its 2025 financial forecasts. The company now projects 2025 sales to range between $60 billion and $62 billion, up from the previous estimate of $58 billion to $61 billion. Earnings per share are expected to adjust from $20.78-$22.28 to $21.75-$23.

Last week, President Donald Trump urged Eli Lilly and other pharmaceutical companies to take action to reduce drug prices by September 29. He also mentioned plans to announce drug tariffs within a week, initially low, but potentially increasing to 150% within a year to a year and a half, ultimately reaching 250%, which would significantly impact drug prices.

On Wednesday, Novo Nordisk (NVO), the Danish pharmaceutical behemoth, released its Q2 2025 financial results, reporting sales growth that did not meet expectations and significantly lowering its full-year growth guidance. The company's stock closed 3.9% lower that day. Many on Wall Street anticipate this development could be beneficial for Eli Lilly.