Eli Lilly Shares Face Pressure Amid Pricing Strategy Shift

Eli Lilly's impressive market run has encountered a significant headwind. The pharmaceutical giant's stock has now declined for seven consecutive trading sessions. This downturn is not linked to disappointing financial results, but rather stems from investor concerns over aggressive pricing moves for its blockbuster weight-loss drug, Zepbound. Market participants worry that an escalating competitive battle and concessions to U.S. policymakers could squeeze profit margins more severely than previously forecast.

The recent selling pressure was triggered by a company announcement earlier this week. Eli Lilly implemented a substantial price cut for Zepbound on its direct-to-consumer platform. The monthly cost for the entry-level dose is now $299, reduced from its previous price of $349.

This decision is a direct competitive response. Rival Novo Nordisk recently lowered the price for its comparable drug, Wegovy. Furthermore, the move aligns with an agreement between Eli Lilly and the U.S. government designed to improve access to GLP-1 medications within federal health programs, including Medicare. While this strategy is expected to boost long-term sales volume, the market's immediate reaction focused on the potential near-term revenue loss per unit sold.

Positive Oncology News Overshadowed

Amid the focus on weight-loss drugs, a key regulatory milestone for Eli Lilly's oncology portfolio received less attention. The U.S. Food and Drug Administration (FDA) granted full approval on Wednesday for the cancer therapy Jaypirca for treating certain forms of leukemia (CLL/SLL). This converts the drug's earlier accelerated approval to a traditional approval, supported by positive Phase 3 clinical trial data.

Should investors sell immediately? Or is it worth buying Eli Lilly?

Jaypirca is becoming an increasingly important revenue generator. The drug generated $358 million in sales during the first nine months of 2025. The full regulatory approval provides physicians with greater confidence in prescribing it for later-line treatments, potentially solidifying its future market position.

Technical Analysis and Market Performance

The weekly sell-off has left a clear mark on the stock's chart. Eli Lilly shares fell 6.25% over the week, closing at €866.10 on Friday.

• RSI (14-day): 28.5 (Technically oversold)
• Distance from 50-day moving average: -7.10%
• Year-to-date (YTD) performance: +14.22%

Despite the correction, the broader yearly picture remains positive with a gain exceeding 14%. The extremely low RSI reading of 28.5 suggests the selling pressure may have been overdone in the short term. The critical factor for the stock's trajectory will be whether increased sales volume for Zepbound can sufficiently offset the impact of lower prices in upcoming quarterly earnings reports.