Novo Nordisk Faces Challenges from Eli Lilly in GLP-1 Drug Competition: Which Stock Should Investors Consider?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 24 2025
0mins
Source: CNBC
Eli Lilly's Market Success: Eli Lilly has achieved a $1 trillion market cap, becoming the first healthcare company to do so, largely due to its successful weight-loss drug Zepbound and diabetes treatment Mounjaro, while Novo Nordisk's shares fell after a failed Alzheimer's trial.
Analyst Preferences: Analysts favor Eli Lilly over Novo Nordisk, citing its diversification and stronger position in obesity treatments, with expectations for Eli Lilly's upcoming oral GLP-1 drug, orforglipron, to perform well upon its market release.
Future Outlook for Eli Lilly: Investors remain optimistic about Eli Lilly's growth potential, with expectations of launching three new drugs in the next three years, and analysts have raised price targets for the stock, indicating significant upside potential.
Opportunities for Novo Nordisk: Despite the recent sell-off, some analysts view it as an overreaction and a potential buying opportunity for Novo Nordisk, suggesting that the impact of the failed Alzheimer's trial on its forecasts may be limited.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LLY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1020.840
Low
950.00
Averages
1192
High
1500
Current: 1020.840
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Reports Strong Q4 Results Driven by Weight-Loss Drugs
- Significant Sales Growth: Eli Lilly's GLP-1 weight-loss drugs generated $7.4 billion in Q4 sales, a 110% increase, while Zepbound's revenue surged from $1.9 billion to $4.3 billion, indicating strong market demand and product acceptance.
- Overall Performance Exceeds Expectations: The company reported a 43% increase in total revenue to $19.29 billion for Q4, with adjusted earnings per share (EPS) jumping 42% to $7.54, significantly surpassing analyst expectations of $6.67, reflecting the company's competitive edge and profitability.
- Optimistic Future Outlook: Eli Lilly projects 2026 revenue between $80 billion and $83 billion, representing a 25% growth at the midpoint, and forecasts adjusted EPS ranging from $33.50 to $35, demonstrating confidence in future market demand.
- Huge Potential for New Drug: The upcoming oral GLP-1 drug orforglipron is expected to gain approval in Q2, and its convenient administration method positions Eli Lilly to further expand its market share in the GLP-1 drug sector, reinforcing the company's leadership in weight-loss medications.
See More
Wall Street Futures Steady as Investors Await Economic Data
- Tech Stock Decline: Concerns over AI have led to a decline in tech stocks over the past week, putting pressure on the market as investors await crucial economic data and hints from the Federal Reserve regarding potential rate cuts.
- Dow Jones Performance: The Dow Jones closed above 50,000 points for the first time on Friday, posting significant weekly gains, indicating a rotation of funds into other sectors and boosting investor confidence.
- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
See More
Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Hims Halts Sales of Wegovy Copycat Following FDA Scrutiny
- Regulatory Pressure Halts Sales: Hims announced the cessation of its $49 compounded semaglutide pill following FDA scrutiny, demonstrating the company's swift response to legal threats, even as retail sentiment remains optimistic.
- FDA Action Raises Legal Risks: The FDA plans to restrict access to GLP-1 ingredients in compounded drugs and refer Hims to the Department of Justice, indicating significant compliance challenges that could impact the company's future market performance.
- Competitors Push Back: Novo Nordisk and Eli Lilly strongly criticized Hims' compounded drug as illegal, threatening legal action to protect their intellectual property, which may intensify market competition and affect Hims' brand image.
- Market Sentiment Remains Bullish: Despite Hims' stock price dropping about 30% year-to-date, retail investor sentiment on Stocktwits is still 'extremely bullish', reflecting confidence in the company's future potential and possibly attracting more investor attention in the short term.
See More
Innovent and Eli Lilly Strengthen Collaboration for Innovative Therapies
- Strategic Collaboration: Innovent Biologics (IVBXF, 1801.HK) has announced its seventh strategic partnership with Eli Lilly, further solidifying their long-standing relationship and commitment to developing innovative therapies globally.
- Unique Development Model: This collaboration introduces a unique model designed to accelerate the global development of Innovent's pipeline, with Innovent leveraging its robust antibody technology platforms and efficient clinical execution capabilities to lead development from concept through Phase 2 clinical trials in China.
- Significant Financial Upside: Under the agreement, Innovent will receive an upfront payment of $350 million and is eligible for up to $8.5 billion in development, regulatory, and commercial milestone payments, highlighting the potential financial benefits of this partnership.
- Global Market Rights: Eli Lilly will gain exclusive rights to develop and commercialize these programs globally outside of Greater China, while Innovent retains commercialization rights within Greater China, ensuring maximized interests for both parties in their respective markets.
See More
Eli Lilly's Stock Rises on Strong Performance
- Significant Sales Growth: Eli Lilly's GLP-1 weight-loss drugs saw a remarkable 110% surge in Q4 sales to $7.4 billion, while Zepbound's revenue soared from $1.9 billion to $4.3 billion, indicating the company's strong growth potential in the weight-loss drug market.
- Financial Performance Exceeds Expectations: The company reported a 43% increase in total revenue for Q4, reaching $19.29 billion, with adjusted earnings per share (EPS) jumping 42% to $7.54, significantly surpassing analyst expectations of $6.67, reflecting its competitive edge and profitability in the market.
- Optimistic Future Outlook: Eli Lilly projects 2026 revenue between $80 billion and $83 billion, representing a 25% growth at the midpoint, and forecasts adjusted EPS ranging from $33.50 to $35, both exceeding market consensus, showcasing confidence in future growth.
- New Drug Potential: The upcoming GLP-1 drug orforglipron is expected to gain approval in Q2, and as an oral medication, it has the potential to rapidly expand market share, meeting the increasing demand for weight-loss drugs and further driving the company's performance growth.
See More
Eli Lilly Reports Strong Q4 Results Driven by Weight-Loss Drugs
- Significant Sales Growth: Eli Lilly's GLP-1 weight-loss drugs generated $7.4 billion in Q4 sales, a 110% increase, while Zepbound's revenue surged from $1.9 billion to $4.3 billion, indicating strong market demand and product acceptance.
- Overall Performance Exceeds Expectations: The company reported a 43% increase in total revenue to $19.29 billion for Q4, with adjusted earnings per share (EPS) jumping 42% to $7.54, significantly surpassing analyst expectations of $6.67, reflecting the company's competitive edge and profitability.
- Optimistic Future Outlook: Eli Lilly projects 2026 revenue between $80 billion and $83 billion, representing a 25% growth at the midpoint, and forecasts adjusted EPS ranging from $33.50 to $35, demonstrating confidence in future market demand.
- Huge Potential for New Drug: The upcoming oral GLP-1 drug orforglipron is expected to gain approval in Q2, and its convenient administration method positions Eli Lilly to further expand its market share in the GLP-1 drug sector, reinforcing the company's leadership in weight-loss medications.
See More
Wall Street Futures Steady as Investors Await Economic Data
- Tech Stock Decline: Concerns over AI have led to a decline in tech stocks over the past week, putting pressure on the market as investors await crucial economic data and hints from the Federal Reserve regarding potential rate cuts.
- Dow Jones Performance: The Dow Jones closed above 50,000 points for the first time on Friday, posting significant weekly gains, indicating a rotation of funds into other sectors and boosting investor confidence.
- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
See More
Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Hims Halts Sales of Wegovy Copycat Following FDA Scrutiny
- Regulatory Pressure Halts Sales: Hims announced the cessation of its $49 compounded semaglutide pill following FDA scrutiny, demonstrating the company's swift response to legal threats, even as retail sentiment remains optimistic.
- FDA Action Raises Legal Risks: The FDA plans to restrict access to GLP-1 ingredients in compounded drugs and refer Hims to the Department of Justice, indicating significant compliance challenges that could impact the company's future market performance.
- Competitors Push Back: Novo Nordisk and Eli Lilly strongly criticized Hims' compounded drug as illegal, threatening legal action to protect their intellectual property, which may intensify market competition and affect Hims' brand image.
- Market Sentiment Remains Bullish: Despite Hims' stock price dropping about 30% year-to-date, retail investor sentiment on Stocktwits is still 'extremely bullish', reflecting confidence in the company's future potential and possibly attracting more investor attention in the short term.
See More
Innovent and Eli Lilly Strengthen Collaboration for Innovative Therapies
- Strategic Collaboration: Innovent Biologics (IVBXF, 1801.HK) has announced its seventh strategic partnership with Eli Lilly, further solidifying their long-standing relationship and commitment to developing innovative therapies globally.
- Unique Development Model: This collaboration introduces a unique model designed to accelerate the global development of Innovent's pipeline, with Innovent leveraging its robust antibody technology platforms and efficient clinical execution capabilities to lead development from concept through Phase 2 clinical trials in China.
- Significant Financial Upside: Under the agreement, Innovent will receive an upfront payment of $350 million and is eligible for up to $8.5 billion in development, regulatory, and commercial milestone payments, highlighting the potential financial benefits of this partnership.
- Global Market Rights: Eli Lilly will gain exclusive rights to develop and commercialize these programs globally outside of Greater China, while Innovent retains commercialization rights within Greater China, ensuring maximized interests for both parties in their respective markets.
See More
Eli Lilly's Stock Rises on Strong Performance
- Significant Sales Growth: Eli Lilly's GLP-1 weight-loss drugs saw a remarkable 110% surge in Q4 sales to $7.4 billion, while Zepbound's revenue soared from $1.9 billion to $4.3 billion, indicating the company's strong growth potential in the weight-loss drug market.
- Financial Performance Exceeds Expectations: The company reported a 43% increase in total revenue for Q4, reaching $19.29 billion, with adjusted earnings per share (EPS) jumping 42% to $7.54, significantly surpassing analyst expectations of $6.67, reflecting its competitive edge and profitability in the market.
- Optimistic Future Outlook: Eli Lilly projects 2026 revenue between $80 billion and $83 billion, representing a 25% growth at the midpoint, and forecasts adjusted EPS ranging from $33.50 to $35, both exceeding market consensus, showcasing confidence in future growth.
- New Drug Potential: The upcoming GLP-1 drug orforglipron is expected to gain approval in Q2, and as an oral medication, it has the potential to rapidly expand market share, meeting the increasing demand for weight-loss drugs and further driving the company's performance growth.
See More
