Jim Cramer says not to worry about Novo Nordisk's lead over Club that has Eli Lilly in the obesity pill market. Eli Lilly shares fell about half a percent this morning, while Novo Nordisk shares rose more than 8% after becoming the first to win FDA approval for a GLP-1 weight-loss pill. “[Novo] I got approval sooner than we thought. People immediately get scared. They sold Lilly. Big mistake,” Jim said during Tuesday's morning meeting. The drop in Lilly stock is overblown because it's only a matter of time before the company receives approval from U.S. regulators for its own oral weight-loss drug, orforglipron. Additionally, orforglipron has advantages over Novo's pill that could make it more attractive to patients. “I don't like Novo. I like Lili. Lilly will obviously be back because they have their own pill and it will be out in three months,” Jim added. Novo plans to launch once-daily oral Wegovy, known as “Wegovy-in-a-pill,” in the United States in early January. The Danish drugmaker said the 1.5-milligram starting dose will be available in pharmacies and through certain telehealth providers with savings offers for $149 per month. Novo expects the Wegovy pill to expand the size of weight-loss drug market, Novo CEO Mike Doustdar said Tuesday in an interview on CNBC: “We also know from our own family and circles of friends that there are many who still don't… get a shot because they're too afraid of the needle or because there's a social taboo that getting a shot makes you feel sick.” Doustdar said in a statement Monday night. (LLY) Yes, the approval is a much-needed victory for Novo, but being first out of the gate doesn't mean it will dominate Lilly in the long run. Consider: Novo Nordisk beat Lilly to the GLP-1 injectable weight loss market with Wegovy in 2021. But that didn't stop Lilly from finally gaining the leadership position in the lucrative space once its Zepbound treatment launches in late 2023. Lilly will generate about $17 billion in revenue from Zepbound sales in 2025, according to FactSet, compared to about $13 billion in revenue for injectable Wegovy. Crucially, Lilly's orforglipron will have some advantages over the Wegovy pill when it finally hits the market. With the Wegovy pill, patients must have an empty stomach and then wait 30 minutes before eating, drinking or taking another medication. Both companies have indicated they have increased supplies of their oral GLP-1s, hoping to avoid shortages that once plagued their injectable counterparts. Overall, it's been a killer year for Eli Lilly shares after a slow first half, and Tuesday's news doesn't change that. The drugmaker will hit a $1 trillion market cap. obesity in order to expand access to expensive treatments. Despite Tuesday's weak performance, Lilly shares are still up 40% since the start of 2025. Meanwhile, Novo shares are down about 40% this year (Jim Cramer's Charitable Trust is long LLY. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you'll receive a trade alert before Jim takes place. a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable fund's portfolio. If Jim has discussed a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. FIDUCIARY, PURSUANT TO THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE RESEARCH CLUB.
