Eli Lilly & Co ( (LLY) ) has fallen by -10.58%. Read on to learn why.
Eli Lilly & Co has experienced a significant stock price drop of 10.58% over the past week, despite delivering impressive first-quarter results for 2025. The company’s revenue soared by 45% due to strong sales of its weight loss drug Zepbound and diabetes treatment Mounjaro. However, the stock took a hit after Eli Lilly lowered its full-year earnings outlook, attributing this to a $1.57 billion charge from acquiring an oral cancer drug from Scorpion Therapeutics. Additionally, the competitive landscape intensified as CVS Caremark announced prioritizing Novo Nordisk’s Wegovy over Zepbound, raising concerns about pricing and market share for Eli Lilly’s GLP-1 drugs.
Analysts remain optimistic about Eli Lilly’s long-term prospects, with many maintaining a ‘Buy’ rating on the stock. The demand for its GLP-1 drugs continues to be robust, with Mounjaro’s sales surging by 113% year-over-year. Despite the recent setback, Eli Lilly’s strong pipeline and strategic investments in R&D and manufacturing expansion are expected to support future growth. Analysts believe the market may have overreacted to the recent developments, and the company’s fundamentals remain strong.
The healthcare sector, known for its resilience, still holds potential for investors, with Eli Lilly being a key player. While the stock has faced short-term challenges, the consensus among analysts suggests a positive outlook, with a strong buy consensus and a price target implying significant upside potential. Investors interested in the healthcare sector should keep an eye on Eli Lilly as it navigates these challenges and continues to innovate in the pharmaceutical space.