Core Viewpoint - Eli Lilly's stock is facing competitive pressure due to Hims & Hers launching a cheaper version of the Wegovy pill, despite a positive long-term price target set by Scotiabank at $1,300, indicating a potential rise of 25.35% from its current trading price [1][2][6] Company Performance - Eli Lilly's current stock price is $1,025.08, reflecting a decrease of 7.41%, which is a drop of $82.04 from previous levels [4] - The stock's trading range for the day was between $1,018.82 and $1,073.49, with a market capitalization of approximately $918.94 billion [4] Competitive Landscape - Hims & Hers' announcement to launch a cheaper version of the Wegovy pill has led to a 6.1% decline in Eli Lilly's stock price, indicating increased competitive pressure in the market [2] - Novo Nordisk, a key competitor, also experienced a 7% drop in its shares following the same announcement, despite having 170,000 users for the Wegovy pill in the U.S. [3] Market Sentiment - Despite the recent decline in stock price, Scotiabank's price target reflects optimism for Eli Lilly's long-term growth potential, emphasizing the importance of the company's ability to navigate competitive challenges [5][6]

Core Insights - Novo Nordisk is reducing the price of its popular drug Wegovy in China, which has led to a nearly 2% decline in its stock price [1][2] - The price cuts are significant, with the two highest monthly doses of Wegovy seeing a 48% reduction, bringing prices to between 987 yuan ($141) and 1,284 yuan ($183) [2] - The pricing adjustment aims to alleviate treatment burdens for patients and improve their quality of life, while also addressing competitive pressures in the Chinese market [4] Company Performance - Novo Nordisk's current stock price is $51.29, with a market capitalization of $173 billion [5][6] - The company's gross margin stands at 81.93%, and it has a dividend yield of 3.36% [6] - The company has previously reduced Wegovy prices by as much as 37% in November, indicating a pattern of strategic pricing adjustments in response to competition [6][7] Competitive Landscape - Novo Nordisk faces intense competition from other approved medicines, such as Eli Lilly's Zepbound, and from third-party compounders creating similar products [6][7] - The company is proactively managing competitive pressures while also achieving results in research and development, including FDA approval for an orally administered version of Wegovy [7]