Novo Nordisk Falls as Study Says Eli Lilly Weight-Loss Ingredient More Effective

Core Insights - A recent study published in JAMA Internal Medicine indicates that Eli Lilly's drugs, Mounjaro and Zepbound, are more effective for weight loss compared to Novo Nordisk's Ozempic and Wegovy, leading to a divergence in stock performance between the two companies [1][2] Group 1: Study Findings - The study analyzed over 18,300 patients receiving either semaglutide or tirzepatide for type 2 diabetes from May 2022 to November 2023 [2] - Patients taking tirzepatide were more likely to achieve a weight loss of 5% to 15% or greater, with significant weight loss observed at 3, 6, and 12 months [2] - The authors noted that individuals treated with tirzepatide experienced larger reductions in body weight compared to those treated with semaglutide, suggesting the need for further studies on the drugs' effectiveness in preventing health risks like heart attacks [2] Group 2: Financial Performance - Both Eli Lilly and Novo Nordisk have seen substantial revenue and profit increases due to the popularity of their weight-loss drugs, prompting efforts to boost production capacity [3] - Novo Nordisk reported a 25% year-over-year increase in sales for Ozempic and Wegovy, while Eli Lilly's Mounjaro sales more than tripled to $1.81 billion, and Zepbound sales reached $517.4 million shortly after its launch in November 2023 [3] - As of Tuesday, Novo Nordisk's ADRs fell by 1.5% to $140.94, while Eli Lilly's shares rose by 0.8% to $925.18, with Novo Nordisk's stock up over 35% and Eli Lilly's nearly 60% year-to-date [3]