Drugmaker Eli Lilly (LLY) expects that its experimental weight-loss pill, orforglipron, could gain regulatory approval by early 2026, CEO Dave Ricks told Bloomberg News during the JPMorgan Healthcare Conference in San Francisco. The company anticipates releasing trial data by mid-2025. Ricks highlighted that pills are easier to produce at scale and more convenient for patients compared to weekly injections like Eli Lilly’s Zepbound and Novo Nordisk’s (NVO) Wegovy and Ozempic.
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Demand for GLP-1 drugs, which help regulate blood sugar and suppress appetite, has surged, which caused shortages of Zepbound and Mounjaro last year. To address this, Lilly is investing heavily in production facilities that include a $9 billion manufacturing complex in Indiana and additional sites in Ireland and Germany. Lilly Diabetes and Obesity President Patrik Jonsson told Quartz that an effective oral option could help overcome supply issues and appeal to patients who avoid injections.
Zepbound and Wegovy Were Approved for Medicare Coverage
Unsurprisingly, Novo Nordisk and Eli Lilly’s dominance in the weight-loss drug market has made them two of the most valuable pharmaceutical companies. Indeed, analysts at Morgan Stanley project the global market for GLP-1 treatments to hit $105 billion by 2030. In addition, both companies recently received a boost after their Zepbound and Wegovy drugs were approved for Medicare coverage.
Nevertheless, the drugs remain expensive, with Zepbound priced at over $1,000 per month without insurance.
Which Stock Is Better, Eli Lilly or Novo Nordisk?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that NVO stock has more room to run than LLY. In fact, NVO’s price target of $113.93 per share implies 35% upside versus LLY’s 32.2%.
