Why Eli Lilly Stock Just Dropped

One time aft reporting Q4 earnings, Eli Lilly (NYSE: LLY) shares tumbled 6% done 10:05 a.m. ET Thursday.

Earnings weren't the problem. Lilly bushed expert forecasts for $6.93 per stock successful nett connected income of $17.9 billion, reporting a $7.54 nett connected income of $19.3 cardinal instead. (Lilly besides gave large guidance, forecasting full-year 2026 net betwixt $33.50 and $35 per share.)

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Investors, however, are reacting negatively to quality from Eli Lilly rival Hims & Hers Health (NYSE: HIMS).

Injectable GLP-1 value nonaccomplishment drugs Mounjaro and Zepbound drove Lilly's occurrence successful 2025. In 2026, however, this pharmaceuticals banal communicative is turning to 1 of non-injectable, pill-based forms for delivering GLP-1 drugs for value nonaccomplishment -- which whitethorn beryllium much fashionable than needles. Novo Nordisk (NYSE: NVO), which created this market, already has a pill-based mentation of Ozempic/Wegovy connected the market.

This morning, Hims & Hers announced it's expanding its "personalized value nonaccomplishment portfolio" by offering patients a "needle-free," compounded semaglutide pill "with the aforesaid progressive constituent arsenic Wegovy."

Hims & Hers' peculiar "introductory" price: Just $49 for the archetypal month.

Hims & Hers says its GLP-1 pill terms volition emergence to $99 per period for months 2 done 5 connected a five-month plan, "paid upfront." The institution didn't accidental what consequent months volition cost, but Lilly is charging a $299 currency terms for nonstop income of its lowest-dose formulation of Zepbound (which requires a needle).

Novo, meanwhile, is charging $199 currency for a month's proviso of its lowest-dose injectable Wegovy, and $149 for Wegovy successful pill form.

Ultimately, Hims & Hers appears to person the lowest terms disposable for a GLP-1 pill. That's not bully quality for Lilly.

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