Eli Lilly and Company shares declined 14% in the first quarter of 2026 as the pharmaceutical sector faced an intensifying regulatory and pricing policy environment, according to RiverPark Large Growth Fund. The Trump administration's continued push to codify most favored nation drug pricing into law raised concerns about long-term U.S. revenue growth, and the expiration of Novo Nordisk's semaglutide patent in India in March 2026 opened the door for generic GLP-1 competition in emerging markets. Despite these headwinds, Lilly management had already guided that price would be a drag on GLP-1 revenue growth in the low-to-mid teens range, while volume growth for Mounjaro and Zepbound is substantially outpacing price declines with demand continuing to exceed supply. The fund continues to view Eli Lilly as one of the highest-quality growth franchises in global healthcare, citing its leadership in obesity, diabetes, and Alzheimer's disease, robust patent portfolio, and expanding global manufacturing capacity.
Eli Lilly and CompanyTrump administration's push to codify most favored nation drug pricing raises concerns about long-term U.S. revenue growth.
Novo Nordisk A/SNovo Nordisk's semaglutide patent expiration in India is mentioned as a competitive factor for Lilly, not as a direct impact on Novo.