Eli Lilly's stock experienced a significant pre-market plummet of 5.90% on Thursday, as negative sentiment swept through the pharmaceutical sector.
The sharp decline came despite multiple analyst upgrades for Eli Lilly, with the downward pressure primarily attributed to two key factors. First, a Reuters report indicated that Hims & Hers Health is launching a copy of Novo Nordisk's Wegovy weight-loss pill at a price of $49, introducing new competitive pressure in the lucrative GLP-1 drug market. Second, sector-wide concerns emerged following disappointing guidance from Novo Nordisk, a major competitor in the weight-loss drug space, whose shares tumbled 19% in Copenhagen trading.
These developments overshadowed Eli Lilly's own strong fourth-quarter earnings report, which showed rising profits amid surging demand for its weight-loss drugs, and numerous analyst price target increases from firms including Goldman Sachs, JP Morgan, Morgan Stanley, and Wells Fargo.