What Happened?
Shares of global pharmaceutical company Eli Lilly (NYSE: LLY) fell 4.5% in the afternoon session after the U.S. Food and Drug Administration (FDA) delayed its decision on the company's new oral weight-loss pill, Orforglipron. The regulator pushed its decision date to April 10 from a prior expectation of late-March. Markets often react negatively to such postponements as they delay a product's market launch and extend uncertainty over its potential sales, which can limit revenue growth. The drug was part of the administration's fast-track review program, which promised quicker decisions for medicines considered critical to public health.
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What Is The Market Telling Us
Eli Lilly’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 3.3% on the news that the company announced a partnership to develop a new oral obesity drug and was reported to be in advanced talks to acquire Ventyx Biosciences for over $1 billion.
The collaboration with Nimbus Therapeutics aimed to create small molecule treatments for obesity, a move that strengthened Lilly's future product line beyond its current injectable drugs. The partnership included a $55 million upfront payment and up to $1.3 billion in future payments based on development and sales success. Separately, The Wall Street Journal reported that Eli Lilly was close to a deal to buy Ventyx Biosciences. Both developments pointed to a significant expansion of the company's portfolio, boosting investor confidence in its strategy to dominate the weight-loss treatment market.
Eli Lilly is down 4.4% since the beginning of the year, but at $1,032 per share, it is still trading close to its 52-week high of $1,110 from November 2025. Investors who bought $1,000 worth of Eli Lilly’s shares 5 years ago would now be looking at an investment worth $5,412.
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