Eli Lilly's stock price has declined despite positive news about its obesity drug, Zepbound, which outperformed Wegovy in a head-to-head study. Analysts attribute the stock's underperformance to concerns about upcoming fourth-quarter earnings.
Eli Lilly investors have received some really good news in recent months with a notable exception of how the stock has performed. Shares of Eli Lilly entered Wednesday's session off nearly 9% since the Oct. 30 close, the day that the drugmaker's messy third-quarter earnings report sent the stock down 6%. Zoom out further to include that earnings hit — and over the past six months, the only Club name doing worse than Eli Lilly is Constellation Brands , slumping almost 15% and 16%, respectively.
Stocks — even those that have beaten the S & P 500 in each of the past five years like Eli Lilly has — go through rough patches from time to time. What makes Lilly's meager performance of late stand out is that during this period, the company's standing in the fierce and lucrative obesity drug race has only gotten more formidable. In late November, hopeful challenger Amgen reported disappointing mid-stage trial results for its experimental obesity treatment known as MariTide. Then on Dec. 20, Wegovy maker Novo Nordisk — Lilly's chief weight-loss drug rival — saw its stock get crushed on the back of weaker-than-expected data for its next-generation obesity treatment called CagriSema. Sandwiched in between those updates from peers were Eli Lilly's own trial results on Dec. 4 , which showed its obesity drug Zepbound beat Wegovy in the first-ever head-to-head study comparing them. The threat of competition in the fast-growing obesity market, which some on Wall Street expect to be worth $100 billion annually by the end of the decade, has loomed over Lilly even during its recent run of success. While the stock has gained about 3% since the session before Amgen's release, why haven't these positive developments translated to more upside? The answer, analysts say, is concern over what Eli Lilly's upcoming fourth-quarter earnings report in early February could have in stor
Eli Lilly Obesity Drug Stock Performance Earnings Report Competition
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