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