NEW YORK, Feb 20, 2026, 11:02 AM EST — Regular session
Eli Lilly and Co dropped 1.6% to $1,006.78 late Friday morning, trailing a 0.6% gain in the S&P 500 ETF. Health-care sector ETF slipped 0.7%. Novo Nordisk’s U.S. shares also headed lower, off roughly 1.9%.
Barclays initiated coverage with an Overweight call and slapped a $1,350 price target on the stock, saying GLP-1 weight-loss drugs now represent a “durable structural shift” in the market. (An Overweight rating signals the firm expects the shares to outperform.) 1
The note arrives at a delicate time for top obesity-drug players. Lilly’s turned into a stock where expectations run high—traders haven’t hesitated to pull back on any sign of pricing pressure or cooling growth, even if the big-picture story still holds.
The back-and-forth isn’t limited to Lilly. Reuters flagged Hims & Hers’ scrapped attempt to market a compounded oral semaglutide pill, noting regulators are cracking down harder on copycat GLP-1 treatments just as big brands ramp up supply and lower prices. BMO’s Evan Seigerman expects compounded GLP-1 volumes to “likely decline further” under the increased scrutiny. 2
Lilly released new clinical results in immunology, a segment it’s counting on for growth beyond its weight-loss drugs. According to a statement with fresh Omvoh (mirikizumab) data in Crohn’s disease, over 90% of patients who reached steroid-free remission at the one-year mark kept that status through year three. Immunology head Adrienne Brown called Omvoh “is redefining what durable disease control can look like.” 3
Deal talk hasn’t really shifted. CSL out of Australia handed Lilly the go-ahead to further develop and market clazakizumab for extra uses, picking up a $100 million payment upfront, plus milestone and royalty prospects. CSL is holding on to exclusive rights for targeting cardiovascular events in patients with end-stage kidney disease. 4
Another clue landed in a regulatory filing. According to a Form 4, Brown—executive vice president overseeing Lilly’s immunology division—picked up 391 shares from vested restricted stock units and sold roughly 170 shares at $1,040, likely to cover taxes. 5
Still, the daily action comes down to one thing: investors are zeroed in on Lilly’s hold over obesity and diabetes, and how long demand stays ahead of manufacturing snags, reimbursement hurdles, and new rivals. Pipeline chatter only starts to count when the weight-loss story gets a little too busy.
Right now, the danger is the pricing battle and crackdown on gray-market versions could outpace the rate at which patients—and insurers—shift to branded drugs. That scenario would crank up the pressure on growth assumptions already factored into the hefty GLP-1 valuations.
The European Crohn’s and Colitis Organisation congress in Stockholm is up next for traders watching immunology stocks. The event, which wraps up Feb. 21, could deliver fresh data and remarks that move names like Lilly. 6
