Why LLY Shares Are Sliding in Premarket Trading: Trump’s Remarks Shake Sector

Eli Lilly and Company (LLY) shares tumbled in premarket trading on Friday, October 17, 2025, following unexpected comments from President Donald Trump regarding potential price cuts for popular weight loss medications. The stock dropped to $787.90 in premarket trading at 8:25 AM EDT, down $31.28 or 3.82% from its previous close of $819.38. Trump’s remarks during a Thursday press conference, where he referred to Ozempic as “the fat loss drug” and promised prices would be “much lower,” sent shockwaves through the pharmaceutical sector, particularly impacting companies with GLP-1 weight loss drug portfolios like Eli Lilly’s Mounjaro and Zepbound.

Eli Lilly Shares Tumble After Trump Targets GLP-1 Drug Costs

During a press conference on Thursday, President Trump specifically addressed weight loss drug pricing when asked about a $1,300 medication he had referenced earlier. When questioned whether these drugs would cost $150 out of pocket, Trump responded firmly, “They’ll be much lower. They’ll be much lower,” adding that prices would “come down pretty fast.” The comments came as the administration announced pricing deals with other pharmaceutical companies, including Germany’s Merck KGaA for fertility treatments, as well as Pfizer and AstraZeneca, raising investor concerns that Eli Lilly could be next in line for price negotiations.

Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, later clarified that negotiations for GLP-1 drugs—the category that includes Eli Lilly’s Mounjaro and Zepbound—have not yet begun. Oz stated, “We’re going to be rolling these out over time. The GLP-1 category of drugs, which includes Ozempic, have not been negotiated yet,” though he added that negotiations would continue until the president is satisfied with the outcome. Despite this clarification, the uncertainty surrounding potential government pressure on pricing triggered a broad selloff in weight loss drug stocks, with Eli Lilly falling more than 5% during the trading day.

Join our Telegram group and never miss a breaking digital asset story.

LLY Valuation Holds Steady Amid Market Volatility

As of the October 16 close, Eli Lilly traded at $819.38 with a market capitalization of $734.54 billion. The stock has faced headwinds recently, posting a year-to-date return of just 6.77% compared to the S&P 500’s 12.71%, and showing a negative one-year return of 9.91%. However, the company’s longer-term performance remains strong, with three-year returns of 153.53% and five-year returns of 493.07%, significantly outpacing the broader market. The company maintains a trailing P/E ratio of 53.48 and a forward P/E of 27.17, with analysts setting an average price target of $891.00, suggesting potential upside despite recent volatility.

Wall Street analysts remain largely optimistic about Eli Lilly’s prospects despite the pricing concerns. The stock holds a Strong Buy consensus rating with an expected 12.4% upside potential, supported by robust demand for its weight loss medications. JPMorgan analysts noted they “see President Trump’s comments as in line with our expectations for the price negotiation” and see “no downside to our numbers from the price points he mentioned.” BMO Capital Markets went further, characterizing the negative share price reaction as “overdone,” noting that insured individuals in the U.S. already pay as low as $25 per month for GLP-1 medications, suggesting any negotiated price represents “more of a headline risk versus a true fundamental change” to Eli Lilly’s business model.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.