Eli Lilly's Global Obesity Drug Strategy Surpasses Novo Nordisk's Wegovy

Eli Lilly, a prominent pharmaceutical company, has placed a significant bet on a consumer-centric strategy, aiming to replicate its success in the U.S. market for obesity drugs globally. The company has established a leading position in the obesity drug market across Europe, Asia, and the Middle East and is now looking to extend this dominance to the U.S. market. This strategy involves collaborating with telemedicine and digital platforms to reach patients who often need to pay out-of-pocket for these medications.

The company has learned from the U.S. market that a consumer-focused approach is crucial. This model has been applied in markets such as Australia and China, where Eli Lilly has partnered with major e-commerce platforms like Alibaba and JD.com. Despite entering the market later than its competitor Novo Nordisk's Wegovy injection, Eli Lilly has quickly gained market share in Europe. The company has since launched its obesity drug, Mounjaro, in Mexico, Brazil, India, and China this year. The decision to delay the launch in some markets was strategic, ensuring a stable supply to avoid the limited availability issues faced by Novo Nordisk in 2023 and 2024 due to production constraints.

Eli Lilly has emphasized that while some countries initially had supply restrictions, these were clearly communicated and typically lifted within a few months. The company's ability to quickly ramp up Mounjaro's supply in multiple markets is attributed to the drug's various production formats, including auto-injector pens and vial packaging. In 2021, Novo Nordisk was the first to introduce highly effective GLP-1 class obesity drugs, but Eli Lilly has since surpassed it, with Mounjaro's total prescriptions now exceeding those of Wegovy. The global demand for weight loss drugs has surged, putting pressure on the supply chains of both companies.