Eli Lilly Shares Dip Over 1.5% in Premarket Trading Following Rival Novo Nordisk's GLP-1 Drug Price Reduction Announcement

Stock News02-24 22:30

Eli Lilly (LLY.US) shares declined in premarket trading on Tuesday. At the time of writing, the stock was down more than 1.5%, trading at $1,042.5. The movement follows news that its main competitor, Novo Nordisk (NVO.US), announced it will lower the official list prices in the United States for several of its GLP-1-based drugs. Novo Nordisk stated that effective January 1, 2027, the company will reduce the wholesale acquisition cost for Wegovy, Ozempic, and Rybelsus in the US market. Following the adjustment, the list prices for Wegovy and Ozempic will be cut by approximately 35% to 50% from current levels, with the changes applying to both injectable and oral formulations. Specifically, this pricing reform will standardize the monthly list price for Wegovy (injectable and oral versions) and Ozempic (injectable) and Rybelsus (oral) at $675. Currently, in the lucrative anti-obesity drug market, Novo Nordisk's market performance still trails behind Eli Lilly's. In a statement, Novo Nordisk indicated that this price reduction applies to all dosages of the mentioned drugs and reflects the company's commitment to improving affordability for patients, as well as public and private payers, against the backdrop of the evolving US healthcare system. The company also noted that the price cuts are expected to particularly benefit patients whose out-of-pocket costs are tied to the official list price. However, Novo Nordisk emphasized that this adjustment will not impact its direct-to-consumer cash-pay pricing system.

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