The obesity drug helped people trim about two inches more off their waists than Wegovy in the first head-to-head study of the rival medicines.

Eli Lilly on Thursday posted better-than-expected quarterly results, but CVS Health's decision to drop the company's obesity drug Zepbound from the list of medicines it covers for reimbursement dragged shares down over 5%.

Eli Lilly and Company's stock dropped 11% after CVS's Zepbound exclusion, but analysts see a mispricing opportunity. Click for why LLY growth remains strong.

A new federal ruling means that patients will no longer have access to cheaper versions of Eli Lilly weight loss and diabetes drugs from compounding pharmacies.

Following the sell-off, Lilly trades at a forward price-to-earnings (P/E) of 37 times 2025 analyst estimates, with a price-to-earnings-to-growth (PEG) ratio of 0.4. PEGs below 1 are generally considered undervalued, so on that basis, the stock is very inexpensive.

Lilly's weekly prescription data for Zepbound is up 354% year-over-year, while Novo's Wegovy is up just 61%. That's based on the latest prescription tracking data by analytics firm IQVIA, which shows total prescriptions for Wegovy at 211,103 in the week of April 18, and Zepbound totaling 338,899 prescriptions in the same week.

Allison Stange lost 40 pounds since starting Zepbound in April 2024, improving both her blood pressure and sleep apnea. Now she fears a deal struck between CVS Health Corp. and Novo Nordisk A/S will undo all that progress.