It's no secret that Novo Nordisk (NVO 0.04%) and Eli Lilly (LLY 1.62%) are toughing it out in the battle of the weight loss drug market. It's also not lost on many investors that Eli Lilly's obesity drug, Zepbound, is winning market share away from Novo Nordisk's offering, Wegovy.
Why Eli Lilly is winning
Despite Wegovy being approved by the Food and Drug Administration (FDA) to treat obesity first in 2021 and Zepbound gaining approval more than two years later in 2023, Zepbound's superior efficacy and Novo Nordisk suffering supply issues with Wegovy have meant the company has lost a bit of the battle.
The war isn't over yet
That said, both Wegovy and Zepbound are delivered subcutaneously (by injection under the skin), but there's another battle brewing over oral weight loss drugs.
Novo Nordisk could be the first to launch an oral version of a weight loss drug (oral Wegovy), and its efficacy and safety data in Phase 3 trials are arguably better than those of Eli Lilly's orforglipron. By way of example, oral Wegovy reduced body weight by 15.1% in its Phase 3 trial, compared to orforglipron's 12.4% reduction (maximum dosage) in its Phase 3 trial.
Image source: Getty Images.
Orally taken weight loss drugs have clear convenience advantages and don't require trained personnel to deliver. As such, the pendulum may switch again to Novo Nordisk. The company has submitted its application to the Food and Drug Administration, which has been accepted, with a decision expected in the fourth quarter of 2025.
If approved, oral Wegovy could decisively turn the battle back in Novo Nordisk's favor.
