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

In May, it announced it would acquire SiteOne Therapeutics, a drugmaker with a promising investigational medicine for pain. In January, it grew its oncology pipeline through the acquisition of a candidate called STX-478 from the privately held biotech Scorpion Therapeutics.

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