Eli Lilly up after experimental GLP-1 pill outperforms Novo's drug in diabetes study

Shares of drugmaker Eli Lilly LLY.N rise 1.24% to $774.21

Co's experimental pill, orforglipron, led to more weight loss and better control of blood sugar in patients with diabetes than Novo Nordisk's NOVOb.CO oral semaglutide in a head-to-head trial

*Lilly's orforglipron showed greater improvements in A1C - a measure of blood sugar over time - meeting the main goal of the study

"It's another feather in the cap for Lilly as it goes toe-to-toe with Novo in 2026 for the launch of oral options in the global obesity marketplace," says Kevin Gade, portfolio manager at Bahl & Gaynor

Novo sells the oral semaglutide under the brand name Rybelsus for type 2 diabetes patients

While we expected Rybelsus erosion with the launch of orforglipron in the near future, we believe this update may accelerate this process, brokerage BMO Capital Markets says

Separately, LLY execs say it was too early to assume the company would use the U.S. Food and Drug Administration's new fast-track review process for orforglipron

LLY shares marginally up YTD