New York, Jan 15, 2026, 16:43 (EST) — After-hours
- Eli Lilly shares dropped roughly 3.8% in late trading following the U.S. FDA’s decision date for its obesity pill being pushed back to April 10
- A compounding pharmacy has filed a new lawsuit, adding fresh legal complications to the GLP-1 market
- Investors are eyeing Lilly’s Feb. 4 results call alongside the FDA’s April 10 target date as the next key milestones
Eli Lilly and Co shares dropped 3.8% to $1,032.97 in after-hours trading Thursday after Reuters reported the FDA is now aiming for an April 10 decision on Lilly’s experimental obesity drug, orforglipron. The report also revealed delays in other drugs under a new fast-track review program, following safety and efficacy concerns raised by FDA scientists. (Reuters)
The timing is crucial because orforglipron is an oral GLP-1 drug — a pill form of a class that’s transformed obesity and diabetes treatment by imitating a gut hormone to suppress appetite and control blood sugar. The FDA’s National Priority Voucher program aims to shorten review periods to one or two months, but even backers consider that timeline ambitious. “I am somewhat surprised about the timeline of just two months,” said Mayo Clinic gastroenterologist Michael Camilleri to Drug Discovery News.
Lilly is touting its pill as a means to expand access and protect its edge in the obesity treatment market amid rising competition. CEO David Ricks said this week he anticipates a second-quarter decision and a “rapid review” that’s “moving at pace,” according to BioPharma Dive, while Novo Nordisk pushes forward with an oral version of Wegovy.
Legal troubles are mounting for the stock. Strive Specialties, a compounding pharmacy, has filed a lawsuit in Texas against Lilly and Novo Nordisk. The suit claims the companies leveraged their dominance in weight-loss drugs to block access to cheaper compounded alternatives via exclusive deals with telehealth providers. Lilly dismissed the allegations as “wrong, on both the facts and law,” while Novo Nordisk called the claims baseless. (Reuters)
Regulatory news gave a boost to the GLP-1 sector earlier this week. The FDA requested that drugmakers strip suicide-related warnings from the labels of weight-loss drugs like Lilly’s Zepbound. This followed a review that found no link between GLP-1 treatments and suicidal thoughts or behavior. Lilly welcomed the FDA’s “careful consideration” of the matter. (Reuters)
AbbVie announced Wednesday it’s ramping up its obesity efforts with an amylin-based drug, positioning it as a contender against GLP-1 treatments like Wegovy and Zepbound. The company highlighted the weight-loss market, which is projected to hit roughly $150 billion annually over the next ten years. (Reuters)
Traders often see regulatory timing in obesity as a binary event, especially when valuations hinge on long-term growth. Delays can be routine — think paperwork, scheduling, or review capacity — yet they still create room for headlines, whether it’s rivals rolling out new products or payers pushing back.
But delays might take on a different shape. More analysis demanded, new usage conditions, or extended review periods would push back clarity on launch timing and early demand. Legal battles over compounding and access could shift focus from volume growth to pricing and distribution issues.
Investors are gearing up for Lilly’s quarterly earnings call on Feb. 4 at 10:00 a.m. EST. The focus will be on any shifts in outlook regarding obesity demand, supply issues, and updates on the orforglipron timeline. (Lilly)
Looking ahead, April 10 marks a key date—the FDA’s latest deadline for deciding on orforglipron. That one day could swing sentiment sharply in either direction. (Morningstar)
