Investors and analysts anticipate Eli Lilly to report stronger sales and profit than Novo Nordisk, with a focus on Zepbound, its leading weight-loss drug. Novo issued a profit warning due to lower U.S. growth expectations and competition. Lilly’s stock fell 5% on Tuesday, signaling concerns about potential vulnerability.

Lilly’s Zepbound holds nearly 60% of the obesity market, with Mounjaro also performing well. The company is expected to be first with the next generation of oral obesity drugs, seeking approval for orforglipron. Lilly has faced less pressure from compounded versions of its medicines compared to Novo Nordisk.

Despite concerns, Lilly’s stock has only slightly declined this year, contrasting with Novo Nordisk’s significant drop. Analysts suggest Lilly could reassure investors by confirming or improving revenue and profit outlooks. Softness in the obesity or diabetes drug market, highlighted by Novo’s struggles, may explain Lilly’s recent share price drop.

Read more at Yahoo Finance: Lilly set for strong quarter after Novo profit warning