Why Eli Lilly Stock Just Dropped
Key Points
Eli Lilly beat earnings soundly yesterday.
Today, the stock is selling off on new competition from Hims & Hers Health.
One day after reporting Q4 earnings, Eli Lilly (NYSE: LLY) shares tumbled 6% through 10:05 a.m. ET Thursday.
Earnings weren't the problem. Lilly beat analyst forecasts for $6.93 per share in profit on sales of $17.9 billion, reporting a $7.54 profit on sales of $19.3 billion instead. (Lilly also gave great guidance, forecasting full-year 2026 earnings between $33.50 and $35 per share.)
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Investors, however, are reacting negatively to news from Eli Lilly competitor Hims & Hers Health (NYSE: HIMS).
Image source: Getty Images.
Him & Hers has big news
Injectable GLP-1 weight loss drugs Mounjaro and Zepbound drove Lilly's success in 2025. In 2026, however, this pharmaceuticals stock story is turning to one of non-injectable, pill-based forms for delivering GLP-1 drugs for weight loss -- which may prove more popular than needles. Novo Nordisk (NYSE: NVO), which created this market, already has a pill-based version of Ozempic/Wegovy on the market.
This morning, Hims & Hers announced it's expanding its "personalized weight loss portfolio" by offering patients a "needle-free," compounded semaglutide pill "with the same active ingredient as Wegovy."
Hims & Hers' special "introductory" price: Just $49 for the first month.
What this means for Eli Lilly
Hims & Hers says its GLP-1 pill price will rise to $99 per month for months two through five on a five-month plan, "paid upfront." The company didn't say what subsequent months will cost, but Lilly is charging a $299 cash price for direct sales of its lowest-dose formulation of Zepbound (which requires a needle).
Novo, meanwhile, is charging $199 cash for a month's supply of its lowest-dose injectable Wegovy, and $149 for Wegovy in pill form.
Ultimately, Hims & Hers appears to have the lowest price available for a GLP-1 pill. That's not good news for Lilly.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.
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