LLY's Zepbound Outshines NVO's Wegovy in Head-to-Head Obesity Study

Core Insights - Eli Lilly's obesity drug Zepbound (tirzepatide) outperformed Novo Nordisk's Wegovy in a head-to-head study, demonstrating a significant weight loss advantage [1][2][3] Group 1: Study Results - In the phase IIIb SURMOUNT-5 study, Zepbound led to an average weight loss of 20.2% of body weight, compared to 13.7% for Wegovy, indicating a 47% greater relative weight loss for Zepbound users [2] - Participants using Zepbound lost an average of 50.3 lbs (22.8 kg), while Wegovy users lost 33.1 lbs (15.0 kg) [2] - A key secondary endpoint showed that 31.6% of Zepbound users achieved at least 25% weight loss, compared to 16.1% for Wegovy [2][3] Group 2: Market Performance - Lilly's shares increased by 2% following the positive study results [4] - The stock has risen 42.4% year-to-date, outperforming the industry average increase of 9.4% [5] Group 3: Revenue Impact - Zepbound and Mounjaro have become significant revenue drivers for Lilly, generating $11.0 billion in sales in the first three quarters of 2024, accounting for approximately 45% of total revenues [6] - Despite strong demand, sales growth has faced challenges due to supply and inventory issues [7] Group 4: Competitive Landscape - The obesity market is projected to grow to $100 billion by 2030, with Lilly and Novo Nordisk currently leading [9] - Other companies, such as Amgen and Viking Therapeutics, are developing GLP-1-based therapies that could compete with Zepbound and Wegovy [10][11] Group 5: Future Prospects - Tirzepatide is being explored for additional indications, which could further enhance sales potential [8] - Wegovy currently has an advantage as it is already approved for reducing cardiovascular risks, which may impact Zepbound's market positioning [8]