Eli Lilly’s rise in the lucrative weight-loss drug market has reached new heights, overshadowing its Danish rival, which has seen a dramatic collapse in market value. The turning point came in late 2023 with the launch of Zepbound, which quickly surpassed competing prescriptions in the critical U.S. market. Despite its later entry, Eli Lilly’s drug gained rapid traction, while the competitor struggled with declining demand and leadership changes. Novo Nordisk, once Europe’s most valuable company, has lost over $400 billion in market capitalization since mid-2023, while Eli Lilly continues to solidify its dominance. Analysts attribute this shift to stronger physician preference for Lilly’s treatments and superior commercial execution.
Market Shifts Favor Lilly
Recent analyst reports highlight Novo Nordisk’s weakening position, with Lilly’s Mounjaro outperforming its rival’s Ozempic in prescriptions. Novo Nordisk’s growth projections have been slashed, while Lilly benefits from exponential market expansion. A potential U.S. policy change to expand Medicare coverage for weight-loss drugs could further boost Lilly’s lead. Meanwhile, Novo Nordisk faces pressure from cheaper alternatives and a plummeting stock price, down over 50% this year. As the weight-loss drug race intensifies, Eli Lilly emerges as the undisputed frontrunner.
