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Novo Nordisk (NYSE:NVO) shares dropped 5% in early trading on Monday after Eli Lilly (NYSE:LLY) released new trial data showing its weight loss drug, Zepbound, delivered stronger results than Wegovy.
In the 72-week SURMOUNT-5 study, patients taking Zepbound saw an average weight loss of 20.2%. That compares to a 13.7% drop for those on Wegovy, a difference of about 47% in favor of Lilly's treatment.
Even with the positive data, Lilly shares fell around 3%. The move came as broader drugmakers slipped after former President Donald Trump suggested he would push to bring down prescription drug costs if re-elected.
Merck (NYSE:MRK) and Pfizer (NYSE:PFE) also lost ground, each falling more than 2% as investors reacted to the possibility of pricing pressure across the sector.
The trial outcome boosts Zepbound's profile in the competitive weight-loss drug space, where both Lilly and Novo are battling for dominance in the fast-growing GLP-1 market.
This article first appeared on GuruFocus.