Eli Lilly's GLP-1 Pill: A Diminished Competitor in the Obesity Drug Race

Eli Lilly's experimental GLP-1 pill showed a 12.4% body weight reduction, less than Novo Nordisk's injectable Wegovy in a study. Shares of Lilly fell, while Novo's rose, reflecting dampened competitive pressure. Analysts express concerns over Lilly's lower efficacy and vomiting side effects.

Eli Lilly announced its experimental GLP-1 pill resulted in a 12.4% body weight loss over 72 weeks, underperforming compared to Novo Nordisk's Wegovy. The study prompted a 14% dip in Lilly's shares, while Novo saw a boost, highlighting reduced competitive threats for Novo.

Analysts expressed concerns that Lilly's results did not meet investor expectations, showing lower efficacy and higher side effects, such as vomiting. According to Markus Manns, Lilly's competitive impact appears weaker than anticipated, favoring Novo's oral semaglutide sales.

Amid comparisons between Lilly's recent data and Novo's outlook downgrade, Eli Lilly remains a formidable player due to its strong GLP-1 therapy market presence. Investors are eager to maintain focus on future anti-obesity drug developments.

(With inputs from agencies.)