Eli Lilly Shares: Is It Time to Sell After Recent Setback?
Eli Lilly recently faced challenges that have raised questions about its stock prospects. As competition in the weight loss sector intensifies, Eli Lilly and its main competitor, Novo Nordisk, are key players. Both companies have a strong lineup of medications, with Eli Lilly focusing on oral GLP-1 therapy known as orforglipron.
Eli Lilly’s Setback with Orforglipron
After successfully completing phase 3 trials, Eli Lilly sought approval from the U.S. Food and Drug Administration (FDA) for orforglipron in December 2025. The FDA initially offered a fast-track review of one to two months, ideally aiming for a decision by the end of February 2026. However, the FDA extended this review period, now expecting to finalize its decision by April 10, 2026. This delay has led to a notable decline in Eli Lilly’s stock price, dropping nearly 4% in a single day.
Impact of the Delay
Novo Nordisk, which received approval for its oral version of Wegovy in December, has gained a competitive edge. The ease of use associated with oral medications appeals to patients who may have apprehensions about needles and cold storage requirements related to injectable therapies. This trajectory allows Novo Nordisk to potentially secure a larger market share ahead of Eli Lilly’s orforglipron launch.
Market Conditions and Stock Data
- Current Price: $1,064.29
- Day’s Change: -2.12% (-$23.09)
- Market Cap: $1.0 Trillion
- Volume: 2.6 Million
- Average Volume: 3.5 Million
- 52-Week Range: $623.78 – $1,133.95
- Gross Margin: 83.03%
- Dividend Yield: 0.56%
Evaluating Eli Lilly’s Future
Despite the recent downturn, it is essential to consider Eli Lilly’s overall position. The original Wegovy launched in 2021, yet Eli Lilly’s medication, Zepbound, has outperformed it in sales as of the third quarter of 2025. While first-mover advantages are significant, factors such as efficacy, safety, and tolerability play a crucial role in market success.
Moreover, orforglipron has demonstrated competitive efficacy, particularly in diabetes patients struggling with weight loss. Beyond orforglipron, Eli Lilly holds a promising pipeline in its primary therapeutic focus and other areas, contributing to a robust financial outlook.
In conclusion, while the market may have overreacted to the FDA’s extended review timeline for orforglipron, Eli Lilly remains a compelling investment option. With strong financials and a diversified drug pipeline, the current setback does not diminish the company’s long-term growth potential.
