Eli Lilly shares fell on Thursday. The decline followed the company's Wednesday report of stronger-than-expected earnings. Lilly also issued a robust financial forecast for 2026 during that announcement.
Telehealth provider Hims & Hers Health announced a new compounded, needle-free pill. This medication uses semaglutide, which is the active ingredient in Novo Nordisk’s Wegovy.
The Hims & Hers offering introduces a significantly cheaper alternative to the GLP-1 market. Eli Lilly currently dominates this category with its Zepbound and Mounjaro treatments.
Investors expressed concern that lower-priced compounded options will increase pricing pressure and competition. These competitive threats overshadowed Lilly’s positive financial results and triggered the share sell-off.