Eli Lilly and Novo Nordisk are racing to broaden their reach in the multibillion-dollar weight loss market. They’ve got competing GLP-1 pills, next-generation pipeline candidates and recently ramped up efforts to rein in compounders and black-market sellers. Lilly is holding onto its sales lead as Novo Nordisk looks to regain lost ground.
Their latest earnings reports offered a snapshot of their strengths and challenges in an evolving market. Lilly posted strong second quarter results with revenue nearing $23 billion, a 48% year-over-year increase that the company attributed to the success of its drugs Mounjaro and Zepbound. These tirzepatide treatments alone are estimated to be worth $70 billion by 2032, according to a recent Evaluate report. But its weight loss pill, Foundayo, which logged $98 million in second quarter sales, fell short of analyst expectations as sales have grown more slowly since its April launch than those of Novo’s Wegovy pill.
Novo Nordisk’s earnings report was a mixed bag. Its Wegovy pill, which nearly doubled analyst expectations with $354 million in first quarter sales, also fell short of projections between April and June. However, sales of the pill remain strong, surpassing 5 million prescriptions since its January launch and prompting Novo to adjust its earnings expectations upwards.
