NEW YORK, December 30, 2025, 5:08 PM ET — After-hours
Eli Lilly shares were up 0.1% in after-hours trading on Tuesday at $1,079.75 after a Reuters report said it and Novo Nordisk are lowering prices of their top-selling obesity drugs in China.
The pricing move matters because investors have treated Lilly’s obesity franchise as a main growth engine, helping support a premium valuation. A sharper-than-expected push to discount in large markets can pressure margins, even if it expands the customer base.
It also lands as drugmakers pivot toward cash-pay channels — patients paying out of pocket, rather than relying on insurance — and prepare pill versions that could broaden demand beyond weekly injections.
Novo confirmed it is adjusting Wegovy prices in China after local media reported steep cuts for two high-dose options in some provinces, while Lilly did not immediately respond to a request for comment. A hospital WeChat account said Mounjaro prices would fall from Jan. 1, and Meituan’s platform listed a 10mg Mounjaro injector pen at a projected 445 yuan ($63), down from 2,180 yuan; Reuters also cited industry expectations that more than 65% of China’s population could be overweight or obese by 2030.
The competitive backdrop is getting tougher. Reuters reported that Novo’s semaglutide patent is set to expire in 2026 in China and some other markets, with Chinese drugmakers developing their own versions and rivals such as Innovent Biologics already active.
Novo’s U.S.-listed shares were down about 0.5% late Tuesday, underscoring how closely the market is watching global pricing for the GLP-1 class of weight-loss medicines.
Beyond China, investors are tracking how quickly pills could reshape the market for GLP-1 drugs — medicines that mimic a gut hormone to curb appetite and help control blood sugar. Reuters reported that Novo’s once-daily Wegovy pill was recently approved in the United States and is expected to launch in early January 2026, while Lilly’s oral candidate orforglipron is under regulatory review and could reach the market within months.
Lilly CEO Dave Ricks has framed the strategy as one of scaling access through simpler channels. “I can charge less and get it to more people at scale,” Ricks said, according to Reuters. Reuters
Reuters also reported that both companies plan starter doses of their weight-loss pills at $149 a month for U.S. cash-paying customers, with Lilly saying repeat cash purchasers would face a monthly cap of $399.
For Lilly shareholders, the question is whether broader adoption offsets margin pressure as pricing shifts from insurer-negotiated reimbursement toward direct consumer purchase. That tradeoff is likely to drive near-term debate as China price changes roll out and pill launches approach.
A separate datapoint landed in regulatory filings: a Form 4 filed with the U.S. SEC showed Lilly Endowment Inc., a director and 10% owner, sold 3,593 shares on Dec. 29 at a weighted average price of $1,085.035, and reported beneficial ownership of 92,190,516 shares after the transaction.
Investors will be watching for any additional detail on China pricing — including how broadly cuts spread and whether rivals respond — alongside early indicators from the U.S. pill rollout and updates on the timing of Lilly’s orforglipron review.
