Shares of Eli Lilly (LLY), Novo Nordisk (NVO), and Viking Therapeutics (VKTX) all experienced significant declines on Tuesday, following disappointing updates from Eli Lilly regarding its 2024 revenue projections. While the pharmaceutical giant raised its 2025 revenue forecast, its lower-than-expected forecast for 2024 sent ripples through the GLP-1 diet drug market, affecting its competitors as well.
As of 10:45 a.m. ET, Eli Lilly’s stock was down by 6%, Novo Nordisk fell by 3.3%, and Viking Therapeutics saw the sharpest drop of all, shedding 12.64% of its value. While Lilly had positive news about its long-term growth and projected an impressive 32% year-over-year increase in revenue for 2024 (around $45 billion), the disappointing revenue guidance for Q4 2024 has raised concerns. Eli Lilly’s Q4 revenue is expected to fall $400 million short of its lower-end estimate of $13.5 billion.
The bad news for Eli Lilly and its rivals stems from what appears to be a cooling market for GLP-1 drugs. Despite the success and widespread adoption of these weight-loss treatments, analysts are questioning whether the market’s growth can continue at the same pace. For investors, this could signal the beginning of a correction in GLP-1 drug companies.
Given the current market conditions and the downward revisions in revenue expectations, the question arises: Is now the time to buy or sell stocks in Eli Lilly, Novo Nordisk, and Viking Therapeutics? Investors might want to take a closer look at the long-term potential of these companies, especially if the GLP-1 market experiences further pressure.
It’s also worth noting that while Eli Lilly has raised its forecast for 2025, the near-term uncertainties surrounding its 2024 revenue make it a critical moment for potential buyers and sellers to assess whether they are comfortable with the risks or opportunities posed by these stocks.
For now, cautious investors may want to tread carefully, considering the short-term volatility while watching for future developments in the GLP-1 market.
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