Eli Lilly and Novo Nordisk have both raised their full-year revenue forecasts amid strong demand for weight-loss and diabetes treatments, reflecting the growing market for GLP-1 drugs. However, investor reactions have diverged, highlighting concerns about product concentration and competitive pressures.

Novo Nordisk reported second-quarter net sales of 78.5 billion Danish kroner ($12.1 billion), a 3 percent increase year-on-year at constant exchange rates, while adjusted operating profit rose 11 percent to 33.4 billion kroner. The company raised its full-year outlook, now expecting sales and adjusted operating profit growth to be flat or decline by up to 6 percent, an improvement from an earlier forecast of a potential 12 percent drop. Despite this, Novo’s shares declined nearly 6 percent before partially recovering, ending the day down 4.2 percent. Investors expressed apprehension over Novo’s heavy dependency on obesity and diabetes products, which accounted for 93 percent of its revenue in the quarter. Moreover, sales in the United States, Novo’s largest market, fell by 4 percent at constant exchange rates, signaling a potential slowdown.

By contrast, Eli Lilly reported robust second-quarter results, with revenue rising 48 percent to $23 billion, supported by strong international growth of 80 percent. Lilly raised its full-year revenue forecast to between $85 billion and $87 billion, up from the previous estimate of $82 billion to $85 billion. Shares in the U.S.-based company rose more than 7 percent in early trading. Lilly’s CEO Mike Doustdar expressed surprise at the negative market reaction to Novo’s improved forecast, emphasizing that Lilly remains Novo’s main competitor in the obesity and diabetes treatment field. At Lilly, these therapeutic areas represent about 65 percent of revenues, offering somewhat greater diversification relative to Novo.

Novo’s weight-loss drug Wegovy, an injectable and now an oral pill launched in the U.S., has recorded over 5 million prescriptions since January. While sales of the oral version increased by more than 40 percent compared to the previous quarter, reaching approximately $497 million, they slightly missed analyst expectations. Novo faces pricing pressures in the U.S., having lowered prices in response to ongoing political scrutiny. The company is banking on volume growth to offset narrower margins. Recently, Novo encountered setbacks with a cardiovascular drug, underscoring the challenges of broadening its product portfolio.

Both companies are competing intensively in the expanding GLP-1 market, with Lilly’s Zepbound and Mounjaro injectables gaining significant traction. Despite competitive dynamics and price adjustments, the sustained demand for both firms’ treatments points to a persistent growth opportunity in obesity and diabetes management. Still, industry observers are closely watching each company’s efforts to diversify beyond their core offerings to mitigate risks associated with reliance on these blockbuster drugs.