New York, February 5, 2026, 16:35 ET — After-hours trading
Eli Lilly shares dropped 7.8% to $1,020.84 in after-hours trading Thursday, reversing course sharply after swinging between $1,113 and $1,006 during the day.
Shares fell after Reuters reported that telehealth company Hims & Hers started selling a $49 compounded version of Novo Nordisk’s new Wegovy weight-loss drug, sparking fears of fresh discounting in the GLP-1 space. (GLP-1 drugs imitate a gut hormone that controls appetite and blood sugar.) These compounded versions are pharmacy-made copies not approved by the U.S. Food and Drug Administration. Novo Nordisk said it plans to take legal and regulatory steps, while TD Cowen analyst Michael Nedelcovych warned that copycats could proliferate with “some kind of minor tweak.” Reuters
The development follows Lilly’s forecast for 2026 sales between $80 billion and $83 billion, with adjusted earnings of $33.50 to $35 per share—both figures beating Wall Street’s estimates. The company also posted quarterly results that topped expectations. Yet, CFO Lucas Montarce cautioned that “Price is expected to be a drag” on growth, citing a U.S. government access deal for obesity drugs. BMO Capital analyst Evan Seigerman noted the quarter highlighted that “the pressures they face are not identical” for Lilly and Novo. Investors are also eyeing an FDA decision on Lilly’s oral obesity drug orforglipron, expected in April. Reuters
In its latest filing, Lilly reported a 43% jump in fourth-quarter revenue, hitting $19.292 billion, driven by tirzepatide products Mounjaro and Zepbound. Mounjaro brought in $7.409 billion, while Zepbound added $4.261 billion. The company noted that strong demand was somewhat tempered by lower realized prices. SEC
CVS Health announced that its Caremark pharmacy benefit manager will replace certain branded bone-disease drugs with cheaper options starting April 1, including generics of Lilly’s Forteo. Pharmacy benefit managers, who negotiate on behalf of employers and health plans, often influence drugmakers’ pricing and sales through these formulary changes. Reuters
Stocks across the board took a hit. On Thursday, major U.S. tech shares tumbled amid growing skepticism about returns on hefty AI investments, dragging the Nasdaq down to its lowest close since November, Reuters reported. Reuters
For Lilly, the whipsaw underscores how the market now prices obesity drugs more on cost and availability than pure demand. A lower-cost pill—even an unapproved compounded version—pushes investors to reconsider where the cash-pay “street price” will land.
But this cuts both ways. Should regulators clamp down on mass compounding or if patients and doctors shy away from non-approved copies, branded demand might hold up better than the market expects. The risk is a sharper drop in net prices, especially as insurers and major drug middlemen continue to push manufacturers for deeper discounts.
April brings a key date: the FDA’s decision on orforglipron. Also on April 1, CVS will roll out its new formulary changes. Traders are bracing for potential legal or regulatory moves that could shake up the market for compounded weight-loss pills.
