Eli Lilly Shares Slide as Foundayo Oral Weight-Loss Pill Shows Slow Start

Eli Lilly shares faced selling pressure on Friday as investors reacted to early prescription data for Foundayo, the company's first FDA-approved oral medication for weight loss. The stock fell nearly 4% during the session, reflecting market concerns over the drug's initial adoption rate. The disappointment stems from a comparison with Novo Nordisk's oral obesity treatment. While Eli Lilly has seen immense success with its injectable treatment, Zepbound, the transition to an oral format appears to be facing a steeper climb than anticipated by the market. According to data from Iqvia Holdings, Foundayo was prescribed 3,707 times during the week ending April 17. While this represents an increase from 1,390 prescriptions in its first week post-approval, it remains far below the 18,410 prescriptions recorded by Novo Nordisk's oral pill during its second week on the market. Eli Lilly has cautioned that early weekly data may not be comprehensive and should be interpreted over a longer time horizon rather than as a complete count. However, the disparity in early uptake has triggered a cautious outlook among traders, as the obesity market remains a primary catalyst for the company's valuation. Despite the slow start for Foundayo, the company maintains a diversified pharmaceutical portfolio. While the weight-loss category is under intense scrutiny, Lilly's broader product range provides a buffer against the underperformance of a single new launch.