Study Shows Lilly's (LLY) Obesity Drug More Effective Than NVO's

Core Insights - A new study indicates that Eli Lilly's Mounjaro (tirzepatide) leads to significantly greater weight loss compared to Novo Nordisk's Wegovy (semaglutide) in patients treated for obesity [1][2] - Mounjaro users lost an average of 5.9% of body weight after three months, compared to 3.6% for Wegovy users, with continued weight loss observed at six and twelve months [1] - The study involved over 18,000 adults and was published on the JAMA Internal Medicine website [2][3] Company Performance - Eli Lilly's stock has increased by 57.5% year-to-date, outperforming the industry average of 21.5%, while Novo Nordisk's stock rose by 38.3% during the same period [3] - Both companies have achieved market capitalizations exceeding $500 billion, driven by strong sales growth in their obesity drug segments [4] Market Outlook - The U.S. obesity market is projected to reach $130 billion by the end of the decade, prompting Lilly and Novo to invest heavily in production capacity and explore new obesity drug candidates [5] - Other companies, including Viking Therapeutics, Amgen, and Roche, are also developing obesity treatments, indicating a growing competitive landscape in the obesity drug market [5][6] Research and Development - Viking Therapeutics is advancing its drug VK2735, which has shown promising weight reduction capabilities in clinical studies [5] - Amgen is expanding its manufacturing capacity for its obesity drug MariTide based on encouraging interim study results [6] - Roche entered the obesity market by acquiring Carmot Therapeutics for $2.7 billion, highlighting the increasing interest in this therapeutic area [6]