The effect is better than Wegovy! Eli Lilly's weight loss drug Zepbound averaged a 20% weight loss over 72 weeks, jumping 2.5% in pre-market trading

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2024.12.04 13:45
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Participants using Novo Nordisk's Wegovy only lost 14%. This result provides Eli Lilly with an opportunity to catch up, especially as the obesity drug market is expected to reach $130 billion by the end of this decade

Eli Lilly recently announced research results showing that its weight loss drug Zepbound performed better than Novo Nordisk's Wegovy in their first clinical trial comparison.

In a clinical trial funded by Eli Lilly, participants using Zepbound lost an average of 20% of their body weight over 72 weeks, while those using Novo Nordisk's Wegovy lost 14%. The trial results confirmed earlier research conclusions that Zepbound's weight loss effects significantly outperform its competitor.

The competition between the two companies has been fierce, with Mizuho analyst Jared Holz referring to it as an "eternal leapfrog game." The results of this study provide Eli Lilly with an opportunity to catch up, especially as the obesity drug market is expected to reach $130 billion by the end of this decade.

Following the announcement, Eli Lilly's stock price rose 2.5% in pre-market trading, while Novo Nordisk's stock price fell 1.8%.

Zepbound Outperforms, Weight Loss Rate Reaches 20%

The study included 751 participants from the United States and Puerto Rico, who received the highest tolerable dose of the medication.

The results showed that participants receiving Zepbound treatment lost an average of 20% of their body weight, about 50 pounds, over 72 weeks, while those receiving Wegovy treatment lost an average of only 14%. The trial results confirmed earlier research conclusions that Zepbound's weight loss effects are superior to its competitor.

Holz stated that the weight loss effect of Zepbound aligns with previously reported data from earlier trials, while Wegovy's weight loss effect is at the lower end of the long-term trial range for that drug. This result is more favorable for Eli Lilly to capture more market share in the intense competition.

In addition to weight loss effects, drug pricing has also become an important factor in the competition between the two companies. Zepbound's monthly list price in the U.S. is $1,060, lower than Wegovy's $1,349.

Currently, the weight loss drug market is becoming one of the fastest-growing areas in the pharmaceutical industry. Industry forecasts predict that by 2030, the market size will reach $130 billion. Novo Nordisk, with its first-mover advantage in GLP-1 class drugs, currently holds a leading position in this field. However, this new trial result may pose a threat to its market position.

The Tug-of-War in the Weight Loss Drug Market Continues!

In response to pressure from Eli Lilly, Novo Nordisk is also accelerating the development of a new generation of weight loss drugs. Its next-generation candidate CagriSema is currently in clinical trials, with early data indicating that the drug may help patients achieve at least a 25% weight loss.

Additionally, the company has initiated two studies to assess the drug's effects on weight and blood sugar control in diabetic patients, with these trials expected to be completed by 2026. At the same time, Novo Nordisk's trial data shows that Wegovy has a significant effect in reducing the risk of cardiovascular disease, potentially lowering the risk of major cardiovascular events such as heart attacks and strokes by 20%.

Novo Nordisk emphasizes that weight loss treatment is not just about the number on the scale, but also relates to overall health improvement.

As competition in the weight loss drug market intensifies, Eli Lilly and Novo Nordisk's "tug-of-war" is expected to continue.