Obesity, diabetes treatments fuel Eli Lilly growth and spark bidding war

Core Insights - The market for obesity and diabetes treatments is experiencing significant growth, with Eli Lilly's drugs Mounjaro and Zepbound generating over $10 billion in sales during Q3, accounting for more than half of the company's total sales of $17.6 billion [1][5] - Novo Nordisk is pursuing the acquisition of Metsera Inc. for up to $9 billion, following Pfizer's nearly $5 billion bid for the same company, which is developing potential treatments but currently has no products on the market [2][6] - The popularity of GLP-1 receptor agonists is driving sales and acquisition interest, as they help regulate appetite and feelings of fullness, although they may not be effective for everyone and can cause side effects [3] Company Performance - Eli Lilly's Zepbound sales nearly tripled to $3.57 billion in Q3, while Mounjaro's revenue doubled to $6.52 billion, largely due to growth outside the U.S. [4] - Combined sales of Mounjaro and Zepbound have reached nearly $25 billion in 2023, surpassing Eli Lilly's total revenue for 2020, and contributing to a Q3 profit of $5.58 billion [5] Market Dynamics - Improved drug supplies and increasing insurance coverage are enhancing access to these treatments, which can cost around $500 per month without insurance [4] - Novo Nordisk's offer for Metsera includes a base payment of $56.50 per share, with potential additional payments based on drug development milestones, significantly increasing the value compared to previous trading prices [6] - Pfizer, known for its COVID-19 vaccine, is re-entering the obesity treatment space after previously halting its own drug development efforts [7]