Eli Lilly’s shares experienced an uptick on Wednesday following the company’s announcement of a study indicating that Zepbound, its highly successful weight-loss medication, was more effective in helping patients lose weight compared to Wegovy, a product from competitor Novo Nordisk.
Lilly reported that individuals using Zepbound achieved an average weight reduction of approximately 20%, whereas those on Wegovy saw an average loss of nearly 14%. Furthermore, a larger percentage of participants on Zepbound achieved at least a 25% reduction in body weight.
The positive study outcomes are likely to enhance Zepbound’s increasing market share, as noted by analyst David Risinger from Leerink Partners in a commentary.
Since its market launch, Zepbound has generated $1.3 billion in revenue for Lilly in just the third quarter of this year, illustrating its rapid commercial success within a short time frame.
The clinical trial involved 751 participants from the United States and Puerto Rico, who were administered the maximum allowable doses of either Zepbound or Wegovy over a period exceeding one year.
These findings corroborate prior studies for both medications. The U.S. Food and Drug Administration (FDA) granted approval for Zepbound last year, when clinical trials demonstrated that the drug could support weight reductions of between 40 to 60 pounds (18 to 27 kilograms).
In contrast, studies pertaining to Wegovy indicated an average weight loss of about 34 pounds (15 kilograms), or roughly 15% of total body weight, leading to its approval by regulators in 2021.
It’s important to note that both medications are distinct formulations of existing diabetes treatments, Mounjaro and Ozempic, developed by Eli Lilly and Novo Nordisk, respectively.
On Wednesday, shares of Eli Lilly and Co., headquartered in Indianapolis, rose by nearly 2.4%, equating to an increase of about $19, bringing the stock price to $833.21. Additionally, shares of Novo Nordisk traded in the U.S. also saw a modest increase.
Eli Lilly’s stock reached a record high of $972.53 in August, based on data from FactSet.