Eli Lilly investors shouldn’t fret about rival Novo Nordisk offering the first obesity pill
Posted by Times Reporter | Dec 25, 2025 | Health | 0 |
Jim Cramer says don’t fret about Novo Nordisk’s lead over Eli Lilly in the obesity pill market. Shares of Eli Lilly fell about half a percent this morning, while shares of Novo Nordisk rose more than 8% after the company became the first to win FDA approval for a GLP-1 weight loss pill. “[Novo] I got approval before we thought. People immediately panic. They sold Lilly. “Big mistake,” Jim said during Tuesday’s morning session. The decline in Lilly shares is exaggerated because it is only a matter of time before the company receives approval from U.S. regulators for its own oral weight-loss drug, orforglipron. Additionally, orforglipron has advantages over Novo’s pill that could make it more attractive to patients. “I don’t like Novo.” I like Lilly. “Lilly is obviously coming back because they have their own pill and it’s coming out in three months,” Jim added. Novo plans to launch once-daily oral Wegovy, known as “Wegovy-in-a-pill,” in the United States in early January. The Danish drugmaker said the initial 1.5 milligram dose will be available in pharmacies and through certain telemedicine providers with savings offers for $149 per month. Novo expects Wegovy pill size to increase Novo CEO Mike Doustdar said in an interview on CNBC on Tuesday: “We also know from our own family and friends that there are many who still do not take a shot, either because they are very afraid of the needle or because there is a social taboo that taking a shot makes you sick.” In addition to attracting new patients to GLP-1, some patients may also switch from injectables to the pill to maintain their weight loss in a convenient way, Doustdar said in a statement late Monday. Yes, the approval is a much-needed victory for Novo. However, keep in mind that Novo Nordisk will beat Lilly in the injectable GLP-1 weight loss market in 2021. Once the Zepbound treatment hits the market in late 2023, Lilly is expected to generate sales of around $17 billion, according to FactSet, compared to around $13 billion in sales for the Wegovy pill when it finally hits the market. The Wegovy pill requires patients to wait 30 minutes before eating, drinking or taking another oral medication in hopes of avoiding the shortages that once plagued their injectable counterparts, and Tuesday’s news doesn’t change that. It became the first drugmaker to reach $1 trillion in market capitalization after President Trump announced deals with Lilly and Novo to expand access to the costly treatments. Despite Tuesday’s muted performance, Novo shares are down about 40% since the start of 2025 (Jim Cramer’s Charitable Trust is long). (A complete list of stocks can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive 45 minutes after sending a trade alert before he discusses a stock on CNBC television before executing the trade. THERE ARE NO FIDUCIARY DUTIES OR OBLIGATIONS BY RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB.
