The global market for obesity drugs is soaring, yet Lilly has a dominant market share.

Novo Nordisk (NYSE: NVO) shares dropped 10% Friday after the drugmaker revealed its experimental drug, ziltivekimab, failed to cut cardiovascular risk in a late-stage clinical trial.

Novo Nordisk (NVO) analysis: strong fundamentals but overvalued. Medium-term upside hinges on pipeline drugs. See here for more details.

Novo Nordisk and Eli Lilly compete in the same blockbuster drug class, yet their 2026 earnings tell dramatically different stories about which company holds the upper hand heading into a pivotal summer of reports and pricing resets.

Novo Nordisk stock has slipped over the past year and is down 36.4% over three years, yet the valuation checks still lean supportive, which sets up a different picture from what the share price alone might suggest.

The stock is down, but it isn't out yet.