Knowing stock market today at a glance

Eli Lilly's Tirzepatide Surpasses Novo Nordisk's Semaglutide in Weight Loss Efficacy but Faces Reimbursement Setback

Mover TrackerWednesday, May 14, 2025 6:42 pm ET

1min read

Eli Lilly is intensifying its competitive stance in the weight loss drug market, putting pressure on rival Novo Nordisk. On May 11th, Eli Lilly disclosed results from the SURMOUNT-5 study, published in the New England Journal of Medicine, showcasing its drug tirzepatide as outperforming semaglutide, a product from Novo Nordisk. Participants treated with tirzepatide showed an impressive average weight loss of 50 pounds over 72 weeks, compared to 33 pounds with semaglutide.

Tirzepatide, also available under the brand name Zepbound, has been a game-changer in the market since its launch. In China, where it was approved earlier this year for type 2 diabetes and weight management, this drug marked the beginning of a new phase of competition with Novo Nordisk's Wegovy. Despite this promising performance data, CVS Health in the U.S. announced a reduction in reimbursement for tirzepatide in favor of semaglutide, due to better pricing agreements.

The head-to-head trial data underscores Eli Lilly’s claim of tirzepatide’s superior weight loss efficacy. Nevertheless, Eli Lilly and Novo Nordisk both lowered their annual earnings expectations recently. The companies attribute these adjustments to Eli Lilly's rising R&D expenses and competition from generic GLP-1 drugs in the U.S. impacting Novo Nordisk. Meanwhile, global market dynamics and pricing appear to be pivotal as both companies strive to maintain their competitive edges.

Aside from weight loss efficacy, tirzepatide's broader range of indications—including cardiovascular and kidney health—suggests potential market expansion. As the World Health Organization plans to endorse obesity treatments, the GLP-1 weight loss drug market is expected to grow substantially, potentially exceeding $50 billion domestically by the end of the decade.

In the SURMOUNT-5 study, tirzepatide achieved a superior weight reduction of 20.2% compared to 13.7% with semaglutide. The safety profile was consistent with previous trials, with gastrointestinal issues being the most common adverse events. Such promising results hold the potential to shift market dynamics, given the heightened consumer and clinical demand for effective obesity treatments.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.