Key Takeaways:
- Eli Lilly shares rose 4.4% after retatrutide succeeded in a Phase 3 obesity trial.
- Lilly's Q1 revenue surged 55.5% to $19.8 billion on tirzepatide sales.
- Novo Nordisk posted a 4% sales decline and plans to cut 9,000 jobs.
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Eli Lilly shares jump 4% as retatrutide succeeds in late-stage trial
Eli Lilly shares jumped 4.4 percent to a record after retatrutide succeeded in a Phase 3 obesity trial, widening its lead over Novo Nordisk in the GLP-1 market.
Volume jumped 65 percent while realized prices fell 13 percent, a deliberate trade-off to capture market share, Chief Executive Officer David Ricks said.
Lilly's first-quarter revenue reached $19.8 billion, up 55.5 percent from a year earlier. Mounjaro generated $8.66 billion, up 125 percent, while Zepbound added $4.16 billion, up 80 percent. The company raised its full-year guidance to a range of $82 billion to $85 billion, with non-GAAP earnings per share of $35.50 to $37.00.
The diverging results show how the GLP-1 duopoly is splitting. Lilly is capturing the growth while Novo restructures around its oral Wegovy pill, which generated $2.26 billion since its January launch with more than 1 million patients.
Novo Nordisk posted a 4 percent adjusted sales decline at constant currency and is cutting 9,000 jobs. Wegovy injectable grew 12 percent to $18.24 billion, but Ozempic fell 8 percent and Rybelsus dropped 15 percent. The company's next-generation candidate CagriSema missed its primary endpoint in the REDEFINE 4 trial, even with 23 percent weight loss, denting its pipeline thesis.
Lilly's advantage extends beyond injectables. The Food and Drug Administration approved Foundayo (orforglipron), the only oral GLP-1 with no food or water restrictions, directly challenging Novo's oral Wegovy. The company also announced four acquisitions — Orna, Centessa, Kelonia and Ajax — across cell therapy, sleep-wake biology and other areas. International revenue climbed 81 percent, suggesting the global ramp is still in early stages.
Novo faces additional headwinds. A planned 50 percent list price cut for Wegovy in January 2027 will pressure margins, while Medicare Part D coverage starting July 1, 2026 may provide some offset. The company's gross margin sits at 81 percent, giving it room to maneuver.
Lilly shares have gained 49 percent over the past year, while Novo shares have fallen 42 percent. The guidance raise signals management expects demand to accelerate. Investors will watch retatrutide's full Phase 3 data and Foundayo's early prescription trends for the next read on market share dynamics.
This article is for informational purposes only and does not constitute investment advice.
