Eli Lilly selloff on Novo report more than warranted, says Citi

Citi analyst Geoff Meacham says Eli Lilly (LLY) shares were weaker yesterday afternoon following a report that Novo Nordisk (NVO) submitted an oral form of semaglutide for obesity to FDA earlier this year. The details are scant, and it remains unknown what dosage or form of semaglutide the submission covers, though Citi suspects it could be a high-dose version of its Rybelsus, the analyst tells investors in a research note. The firm thinks the headline is more negative than warranted, given that Rybelsus has food effect limitations that has stymied its market reception and Lilly’s orforglipron demonstrated 14.7% weight loss efficacy at 36 weeks in its Phase 2 obesity study. Citi remains a buyer of Lilly shares.