In the wake of this sell-off, a critical question arises about whether LLY stock represents a buying opportunity.

Lilly's weight-loss medications Mounjaro and Zepbound are gaining market share on Novo's Wegovy and Ozempic, but investors remain unconvinced.

The stock is cheaper but still trades at a premium valuation. Shares of Eli Lilly (NYSE: LLY) sank 18% this week, according to data from S&P Global Market Intelligence. The drugmaker with a market cap of over $500 billion is in a sharp drawdown due to previously high expectations and weak data on its obesity drug pipeline.

Eli Lilly & Co has experienced a significant stock price decline of 18.64% over the past week, largely due to disappointing results from a late-stage clinical trial for their weight-loss pill. The trial revealed that the pill only helped patients lose about 12% of their body weight over 72 weeks,