Why Eli Lilly Stock Trounced the Market Today

By Eric Volkman – Apr 1, 2026 at 6:23PM ESTKey PointsIt will compete directly with a similar product from rival Novo Nordisk.It remains to be seen which pill American users will prefer.Wednesday was a good day for American stocks generally, but it was even sunnier for Eli Lilly (LLY +3.84%). The pharmaceutical giant won regulatory approval for a product that's bound to be very popular, and investors rewarded the company by pushing its stock nearly 4% higher on the day. That crushed the S&P 500 index's 0.7% gain. Not a tough pill to swallow Before market open, Eli Lilly announced that the U.S. Food and Drug Administration (FDA) approved its Foundayo weight-loss product. What makes this groundbreaking for the company is that Foundayo is a daily pill. The pharmaceutical titan's first approved weight-loss drug, the popular Zepbound, is delivered by injection once per week. The two also use different molecules to do their work. Image source: Getty Images. The freshly approved drug will start shipping starting next Monday, April 6, through the company's proprietary LillyDirect online sales platform. Self-pay options start at $149 monthly for the lowest Foundayo dose. "As a convenient, once-daily oral pill that delivers meaningful weight loss, this is obesity care designed for the real world," Eli Lilly quoted its CEO, David Ricks, as saying. ExpandNYSE: LLYEli LillyToday's Change(3.84%) $35.33Current Price$955.10Key Data PointsMarket Cap$869BDay's Range$925.65 - $976.5952wk Range$623.78 - $1133.95Volume278KAvg Vol3.2MGross Margin83.04%Dividend Yield0.68% Turning loss into gain Foundayo's inevitably going to be compared to the Wegovy pill, the recently FDA-approved obesity product from Novo Nordisk. Would-be patients have to weigh several factors. In Foundayo's favor, its molecule is sturdier, and the drug can be taken anytime, unlike the more delicate Wegovy pill. Yet the latter has reported higher weight-loss figures in clinical testing than the former. Yet we should remember that Eli Lilly is massive and has vast resources to market the heck out of Foundayo. By contrast, Novo Nordisk is more limited. So I think we'll see significant take-up of Eli Lilly's new drug, and an accompanying lift in share price. Read NextApr 1, 2026 •By Lyle DalyThe Largest Companies by Market Cap in April 2026Apr 1, 2026 •By Manali Pradhan, CFA1 Reason This $900 Stock Could Announce a Split in 2026Mar 28, 2026 •By Prosper Junior Bakiny1 Reason Eli Lilly Stock Is Still a BuyMar 27, 2026 •By Prosper Junior BakinyEli Lilly vs Novo Nordisk: Which Obesity Drug Stock Is the Better Buy?Mar 26, 2026 •By Reuben Gregg BrewerCould Buying Eli Lilly Today Set You Up for Life?Mar 26, 2026 •By Rachel WarrenCan You Invest in Ozempic in 2026?

Everything You Need to KnowAbout the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedEli LillyNYSE: LLY$954.52(+3.78%)+$34.75Novo NordiskNYSE: NVO$36.48(-0.73%)-$0.27*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.