Novo Nordisk A/S (NYSE: NVO) has filed a lawsuit against rival weight loss drug maker Eli Lilly and Company (NYSE: LLY), alleging the company ran misleading advertisements about its products.
Novo Nordisk claims Lilly relied on outdated clinical trials and misleading dosage information to inflate the efficacy claims of its weight loss drugs compared to Novo Nordisk’s own offerings.
Lilly pushed back firmly, stating that its trials were conducted through a robust process and that it would defend itself “vigorously” against the lawsuit.
CNBC’s Jim Cramer, a longtime supporter of Lilly, wasted no time in sharing his view on the legal dispute, questioning Novo Nordisk’s decision to pursue litigation rather than compete directly in the marketplace.
Cramer said on Tuesday: “Why don’t you try to win Novo Nordisk instead of going to court?”
He elaborated further, saying: “Look. . .they started it, they had the franchise. And yet somehow, David Ricks at Lilly has just done incredible things. Now I will say, I happen to like the guy who’s at Novo. It’s not his fault. He was not the guy who blew it.”
Cramer continued: “These claims are very difficult. Doudstar was on the show multiple times. . .I think he’s a very good guy from Novo. But you know, there’s a bigger issue than misleading ads. I mean these are drugs that are really good and we’ll suss it out.”
The CNBC host has consistently praised Eli Lilly over the past year, pointing to the company’s manufacturing footprint and a diversified drug portfolio that extends well beyond weight loss treatments.
During a June 12th appearance on Mad Money, Cramer stated: “I don’t know if they’re going to split it, but I gotta tell you, the earnings are coming through. The drugs are coming through. They’ve got momentum. They’ve got build-out of a lot of different factories so they can produce all the GLP-1s… Huge position for my Charitable Trust. I want you to stay in the stock. I think it’s a really good one.”
Market performance data appears to validate Cramer’s preference, with Novo Nordisk shares down 31% over the past year and 6.9% year-to-date, while Lilly’s stock has surged 48.5% over the same period and is up 10.7% year-to-date.
Investment bank sentiment reflects a similar divide, with Goldman Sachs slashing its Novo Nordisk share price target to DKK260 from DKK400 in March, citing weaker estimates for the company’s CagriSema drug.
Citi took a more optimistic view, raising its Novo Nordisk price target to $1,600 from $1,500 and maintaining a Buy rating, citing confidence in the company’s weight loss, diabetes, and other drug franchises.
Hedge fund interest tells a similar story, with 132 out of 1,022 funds in Insider Monkey’s Q1 2026 database holding a stake in Eli Lilly, compared to just 55 funds holding positions in Novo Nordisk.
The scale of those holdings further underscores the gap, as Fisher Asset Management, the largest stakeholder in both companies, disclosed a $4.4 billion position in Lilly against a $332 million stake in Novo Nordisk.
