Why Eli Lilly Stock Just Popped

The Motley FoolFeb 9, 2026 4:05 PM

Key Points

Hims & Hers Health began advertising a $49 Ozempic pill lookalike last week -- then stopped.
Novo Nordisk charges $149 for its own Wegovy pills. Lilly charges $299 for Zepbound shots.
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Eli Lilly (NYSE: LLY) stock bounced back 2.4% by 9:50 a.m. ET Monday after taking a tumble last week.

Shares of the big pharma stock and manufacturer of Mounjaro and Zepbound GLP-1 weight loss drugs sank several percent Thursday after Hims & Hers Health (NYSE: HIMS) announced it would sell an Ozempic lookalike pill to compete with Novo Nordisk's (NYSE: NVO) Wegovy pill -- and with Eli Lilly's Mounjaro and Zepbound injectable weight loss drugs as well.

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Over the weekend, everything changed.

Woman injecting self in arm with a GLP-1 injector pen.

Image source: Getty Images.

Him & Hers under attack

First, on Friday, the U.S. Food and Drug Administration announced plans to crack down on Hims & Hers, potentially cutting off access to ingredients the company needs to manufacture Ozempic copycats or seizing Hims & Hers products. Hims said Saturday it will not sell its pill after all.

This morning, Novo Nordisk sued Hims & Hers anyway, demanding a permanent injunction against the company for selling compounded copies of its drugs in any form (injectable or pill-based).

Hims quickly responded with a jingoistic accusation that "Danish company" Novo was trying to deprive "millions of Americans [of] compounded medications for access to personalized care." It's worth pointing out, though, that Hims & Hers's offer to sell knockoff Ozempic pills for $49 a month poses as big a threat to American Eli Lilly as it does to Novo.

What this means for Eli Lilly

More importantly for investors, Eli Lilly could benefit even more from Novo Nordisk's lawsuit (and the FDA investigation, and Hims' capitulation) than will Novo. After all, at last report, Lilly was charging $299 a month for Zepbound (which requires a needle), versus Novo charging $149 for Wegovy in pill form.

Hims & Hers' $49 price tag was a bigger threat to Lilly. Its disappearance is even better news for Lilly than for Novo.

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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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