Eli Lilly's New Oral Weight Loss Drug Outperforms Semaglutide, Eyes Potential US Approval In Q2

Eli Lilly and Co. (NYSE:LLY) shares are down on Thursday. The company announced promising results for its oral GLP-1 medication, orforglipron.

On Thursday, the Zepbound maker shared detailed results from ACHIEVE-3, the first head-to-head Phase 3 trial evaluating orforglipron, an oral GLP-1, compared with Novo Nordisk A/S’ (NYSE:NVO) oral semaglutide in adults with type 2 diabetes inadequately controlled with metformin. The 52-week trial enrolled 1,698 participants.

Lilly’s Oral Drug Outperforms Novo Nordisk’s Drug

In ACHIEVE-3, orforglipron outperformed oral semaglutide across the primary and all key secondary endpoints, delivering significantly greater improvements in A1C (blood sugar) and weight.

In the latest news, Eli Lilly reported that orforglipron 36 mg significantly outperformed oral semaglutide 14 mg in a Phase 3 trial, achieving a 2.2% reduction in A1C compared to 1.4% for the latter. Additionally, participants taking orforglipron lost an average of 19.7 lbs (9.2%), which is 73.6% greater weight loss than those on semaglutide.

The company has submitted orforglipron for regulatory approval in over 40 countries, with a potential U.S. decision for obesity treatment expected in the second quarter of 2026.

On Monday, Novo Nordisk released headline data from its REDEFINE 4, an open-label phase 3 trial from the global REDEFINE clinical trial program.

The trial did not achieve its primary endpoint of demonstrating non-inferiority on weight loss for CagriSema compared to Eli Lilly’s tirzepatide after 84 weeks.

The broader market experienced declines on Thursday, with the S&P 500 down 1.08% and the Nasdaq slipping 1.80%. Eli Lilly’s drop comes along with broader market weakness, suggesting that the positive news surrounding orforglipron may be driving investor interest independently of market trends.

Technical Analysis

Currently, the stock is trading 5.2% below its 20-day simple moving average (SMA) and 8.4% below its 100-day SMA, indicating some short-term weakness. Over the past 12 months, shares have increased approximately 65%, and they are currently positioned closer to their 52-week highs than lows.

The RSI is at 50.00, which is considered neutral territory, indicating no strong momentum in either direction. Meanwhile, MACD is at 0.10, below its signal line at 0.15, suggesting bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $1,100.00
• Key Support: $950.00

LLY Price Action: Eli Lilly shares were down 1.97% at $1008.53 at the time of publication on Thursday.

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