The obesity drug market, long dominated by Novo Nordisk and Eli Lilly, is shifting toward Eli Lilly's sole leadership. While Novo Nordisk's blockbuster products Wegovy and Ozempic lose ground to Eli Lilly's Zepbound, the Danish drugmaker's highly anticipated new treatment has delivered disappointing clinical results.
According to the Financial Times and CNBC on December 23, Novo Nordisk shares plunged 16.5% after clinical trials showed its upcoming obesity drug compound cagrisema underperformed against Eli Lilly's tirzepatide. This marks the stock's lowest level since Wegovy's launch in June 2021. Cagrisema achieved average weight loss of 23% over 84 weeks, falling short of tirzepatide's 25.5%.
Novo Nordisk, once a pioneer in obesity treatment, faces a triple threat: market share losses to Eli Lilly, competition from cheaper generic drugs, and U.S. drug price reductions. The company announced it expects net sales and profits to decline by up to 13% this year.
Eli Lilly, meanwhile, announced that its reusable "KwikPen" device received FDA approval. With an oral obesity pill scheduled for launch in April, further revenue growth is anticipated.