New York, February 24, 2026, 10:36 (ET) — Regular session
- LLY slides roughly 1.3%. Investors zero in on margins after competitors shift pricing, leaving efficacy in the background.
- Novo Nordisk plans to drop the U.S. list prices for Ozempic and Wegovy to $675 per month starting Jan. 1, 2027.
- Investors are watching for what’s next from Lilly in the obesity drug space, with a key U.S. pill decision anticipated in April.
Eli Lilly and Company stock slipped roughly 1.3% to $1,045.05 Tuesday morning, shaken after Novo Nordisk announced plans to drop its U.S. list prices for Ozempic and Wegovy to $675 per month starting Jan. 1, 2027. (Investing)
For Lilly, it’s straightforward: price once again takes the spotlight in the obesity-drug narrative. GLP-1 drugs — they imitate gut hormones, tamping down appetite and cutting blood sugar — have radically altered what investors expect from both firms. Even the slightest signal of a reduced “sticker price” can shake up reimbursement negotiations and shift cash-pay interest.
The drop comes right after a sharp rally. Shares of Lilly surged roughly 5% on Monday, propelled by trial results showing Novo’s CagriSema lagged behind Lilly’s Zepbound. Reuters noted that weight loss with Zepbound even topped some of Lilly’s own prior data. BMO Capital’s Evan Seigerman didn’t mince words: “They literally ran a trial that said that Lilly’s product is better.” (Reuters)
CagriSema trimmed body weight by 23% over 84 weeks in the head-to-head trial, while Lilly’s tirzepatide posted a 25.5% reduction, according to Novo. Markus Manns at Union Investment, which holds shares in both companies, didn’t mince words: “This is a worst-case scenario for Novo.” Nordnet’s Per Hansen pointed out the difference “may seem like a minor difference, but to investors it’s very significant.” (Reuters)
Tuesday’s session showed investors wrestling with two forces—Lilly’s clinical advantage on one side, and Novo pushing for tougher pricing on the other.
Lilly is leaning into access and ease of use. On Monday, the company announced that the U.S. Food and Drug Administration has approved a four-dose KwikPen for Zepbound, letting patients get an entire month’s therapy from one device. Pricing for the lowest 2.5-milligram dose starts at $299 per month for those paying cash. (Reuters)
Novo’s CagriSema stumble continues to ripple across the Street. Barclays analysts slashed their peak sales estimate for CagriSema, dropping it to $2 billion from the previous $12 billion after the fresh data—a dramatic cut that highlights just how fast the market can turn on so-called “next best” contenders. (Reuters)
Lilly’s risk scenario isn’t difficult to imagine. Should list prices turn into a battleground, the market’s gaze may shift away from sheer prescription numbers, zeroing in on profitability per script—and on whether Lilly gets pulled into even steeper discounting. There’s also the matter of data: trial results don’t always hold their shine, Novo still has more studies lined up, and payer decisions can lag well behind what stocks are pricing in.
Investors are zeroed in on what happens next with U.S. regulators as the new class of obesity drugs advances. Lilly, for one, is anticipating a U.S. ruling on its own weight-loss pill in April. Eyes will also turn to management’s next big update: the Q1 2026 earnings call, set for April 30. (Lilly)
