New York, January 16, 2026, 17:39 EST — After-hours
Eli Lilly (LLY.N) shares ticked up about 0.5%, closing at $1,038.40 in after-hours trading Friday, after swinging between $1,019.00 and $1,049.83 during the session. Internal documents reviewed by Reuters revealed the U.S. FDA has pushed back its target decision date for Lilly’s obesity drug orforglipron to April 10. Holly Fernandez Lynch, a health policy professor at the University of Pennsylvania, noted the delay signals the agency remains cautious, essentially saying: “Hold on, we’re not actually sure this product should be allowed on the market.” (Reuters)
Timing is crucial as Lilly vies with Novo Nordisk (NOVOb.CO) for dominance in the oral GLP-1 market—drugs that mimic gut hormones to curb appetite and reduce blood sugar. Novo’s Wegovy pill, launched on Jan. 5, snagged roughly 3,071 U.S. retail prescriptions in its first four days, according to IQVIA data cited by analysts. Still, they warned this early figure offers only a brief glimpse. “The launch of the Wegovy pill and later Lilly’s would drive the weight-loss market this year,” said Suchita Shah, senior partner at BCG. (Reuters)
At the J.P. Morgan Healthcare Conference in San Francisco this week, executives and advisers flagged worries that a two-month FDA review might increase legal exposure if side effects emerge post-approval. The National Priority Voucher Program promised a one- to two-month fast track, but Reuters reports some reviews, including Lilly’s, are already stretching longer. Lilly’s research chief Dan Skovronsky said, “We’ve just started, so let’s see how it goes. But I’m excited about it,” and added, “We welcome anything that gets medicines to patients faster.” (Reuters)
Lilly is now facing a new legal challenge over access to its obesity drugs amid ongoing regulatory uncertainty. On Thursday, Texas-based compounding pharmacy Strive Specialties filed a lawsuit against Lilly and Novo, accusing them of leveraging their dominant position in the GLP-1 market to restrict access to cheaper compounded versions of these drugs. The complaint points to exclusive deals with telehealth providers as part of their strategy. Lilly dismissed the suit as “wrong, on both the facts and law,” while Novo labeled the allegations baseless and vowed to fight them. (Reuters)
Compounded drugs are custom blends made by pharmacies, typically used when a branded medication is scarce or a physician requests a unique dose or formulation. While this won’t shift near-term sales, it shines a spotlight on distribution networks, telehealth collaborations, and how firmly companies crack down on imitators.
In a separate filing, Lilly disclosed it holds 6,344,114 shares of Aktis Oncology common stock, marking a 10% stake. The Form 3, dated Jan. 15, referenced an event from Jan. 12, according to the document. (SEC)
With Friday’s close behind them, U.S. markets gear up for a long weekend as the NYSE will be closed Monday in observance of Martin Luther King Jr. Day. When trading resumes Tuesday, attention will be on the FDA timeline, the ongoing compounding lawsuit, and early signals from Novo’s obesity-pill launch—all key for obesity-drug stocks. (New York Stock Exchange)
Two clear risks threaten bulls here: the FDA review could be delayed further if regulators demand additional data, and the voucher program is under the microscope, raising doubts about whether fast-tracking and scientific rigor can coexist without sparking new lawsuits. The Strive case might expand, too, while ongoing legal battles with compounders could stretch out longer than expected.
Lilly’s next key date is the FDA’s April 10 target action deadline for orforglipron, a milestone traders are closely watching in the coming weeks. (Biospace)
