Core Viewpoint - The two major weight loss drug manufacturers, Novo Nordisk and Eli Lilly, are facing a crisis of investor confidence, having lost a combined market value of $252 billion this year, equivalent to the entire market value of Hermès [1] Group 1: Market Performance - Novo Nordisk's stock has dropped 49% this year, resulting in a market value loss of $166 billion, while Eli Lilly's stock has decreased by 11%, losing $86 billion [1] - Since their peak last year, the total market value loss for these companies exceeds $600 billion [1][2] - The obesity treatment market is experiencing a significant adjustment, with expectations returning to a more rational level [1] Group 2: Policy and Regulatory Environment - The Trump administration's policies are increasing market concerns, with both companies receiving letters demanding lower drug prices [1][3] - A total of 15 pharmaceutical companies received similar price reduction requests, indicating a shift towards aggressive trade and pricing policies [3] - The broader pharmaceutical sector has collectively lost $128 billion in market value this year, with the top ten pharmaceutical groups in the US and Europe now valued at $2.8 trillion [3] Group 3: Internal Confidence Signals - Despite challenges, there are signs that market sentiment may be bottoming out, as five executives at Eli Lilly purchased stock following disappointing earnings, marking the first insider buying in three years [5] - CEO Dave Ricks made a significant purchase of $1.1 million, indicating confidence in the company's future [5] - The current low price-to-earnings ratio for the pharmaceutical sector may set the stage for a future rebound [5]