Yahoo Financeยท2025-11-07 16:17Core Insights - Shares of Novo Nordisk and Eli Lilly declined after both companies agreed to lower prices for their GLP-1 weight-loss drugs, Wegovy and Zepbound, to between $149 and $350 from previous prices of $500 to $1,000 for U.S. government programs and cash payers [1][3] Pricing and Market Impact - The price reduction is expected to have a "low single-digit" negative impact on Novo's global sales growth next year, but increased volumes under Medicare are anticipated in the mid to long-term [3] - Eli Lilly will set a net price of $245 for Zepbound, representing a 20% to 35% discount compared to its diabetes drug Mounjaro, which contains the same active ingredient [3] - The lowest dose of Zepbound will be priced at $299 per month, with higher doses at $449, reflecting a $50 discount from current direct-to-patient prices [8] Competitive Landscape - Novo Nordisk faces heightened competition from Eli Lilly's Zepbound and other copycat drugs in the weight-loss market, having seen its market value decrease by 70% since last year due to supply constraints and commercial challenges [6] - Despite the price cuts, analysts believe that the deals may yield more positive outcomes than negative for both companies, as expanded access is expected to boost sales volume [4] Stock Performance - Following the announcement, Novo's shares fell by 3.7%, reaching their lowest level since the new CEO took office, while Eli Lilly's shares dropped by 2.7% [5] - Eli Lilly's shares had previously gained over 15% in the week leading up to the announcement, with the recent dip attributed to profit-taking by investors [7]