Lilly Primed for Gains as Novo Nordisk Stumbles Ahead of Q2 Earnings

As of August 6th, 2025, analysts are anticipating that Eli Lilly's second-quarter results will be a bright spot, with the company poised to capitalize on the struggles of its rival Novo Nordisk. Novo Nordisk's stock has plummeted by around 47% since the start of the year, as doubts have emerged about the outlook for its GLP-1 drugs, Ozempic and Wegovy.

In contrast, Lilly's business appears to be holding up much better, according to analysts. They expect the proof will be in Lilly's upcoming quarterly results and outlook, which are scheduled to be released on August 7th. Lilly's experimental drugs, including the GLP-1 pill orforglipron, are also seen as potential catalysts that could help propel the company's shares higher.

Investors are particularly eager to hear more about orforglipron, which in a recent late-stage trial helped patients with type 2 diabetes lose weight without serious side effects. The readout of the phase 3 data for patients with obesity is expected to be released soon, potentially providing another boost for Lilly.

Additionally, analysts are keeping a close eye on the impact of CVS Health's policy of giving favored status to Novo Nordisk's Wegovy over Lilly's Zepbound. While this could pose a headwind for Lilly, there is also the possibility that the company may strike a deal to get back on CVS Caremark's list of covered medications.