Key Takeaways
- Novo Nordisk shares drop 1.1% after study favors Eli Lilly’s Mounjaro.
- Mounjaro users 76% more likely to lose 5% body weight than Ozempic users.
- Weight-loss drug market could hit $150 billion annually by early 2030s.
What Happened?
Novo Nordisk shares fell 1.1% on Tuesday following a JAMA Internal Medicine analysis showing Eli Lilly’s Mounjaro leads to faster and more significant weight loss compared to Novo’s Ozempic. The study examined health records and pharmacy data for 9,193 patients on Mounjaro and a similar number on Ozempic.
Results indicated Mounjaro users were 76% more likely to lose at least 5% of their body weight, twice as likely to lose 10%, and three times as likely to lose 15%. The average participant weighed 242 pounds, and about half had type 2 diabetes.
Why It Matters?
For investors, this data is crucial. The weight-loss drug market is booming and could be worth $150 billion annually by the early 2030s. Novo Nordisk and Eli Lilly are key players, historically dominating the insulin market. However, this study shifts the competitive landscape.
Novo Nordisk noted that the analysis did not include its Wegovy drug, emphasizing the need for head-to-head clinical trials for an accurate comparison. Eli Lilly’s Mounjaro showing better results could influence market share and profitability.
What’s Next?
Investors should monitor upcoming clinical trials comparing these weight-loss drugs directly. Novo Nordisk aims to bolster its market position by emphasizing Wegovy’s effectiveness. Meanwhile, Eli Lilly will likely continue capitalizing on Mounjaro’s superior results.
The competition will likely intensify as both companies race to scale up production to meet the soaring demand. Keep an eye on future regulatory approvals, market expansions, and any new data that could sway market dynamics further.