Eli Lilly's Oral Obesity Drug Foundayo Captures Over 30% of New US Patients

Eli Lilly (LLY) announced its oral obesity treatment, Foundayo, has captured more than 30% of new patient prescriptions in the U.S. market, marking a significant challenge to the early dominance of rival Novo Nordisk (NVO). The update signals intensifying competition in the rapidly growing weight-loss drug sector.

Challenging Novo Nordisk's Lead

Speaking at the Morgan Stanley healthcare conference on Monday, Lilly Executive Vice President Ilya Yuffa disclosed the market share figure. The number indicates a substantial gain for Foundayo, narrowing the lead held by Novo Nordisk's Wegovy pill.

In August, Novo Nordisk CEO Mike Doustdar estimated that the oral version of Wegovy had captured about 90% of the country's oral obesity market. Lilly's recent gains suggest a more competitive landscape is emerging for tablet-based treatments, which are seen as a key growth area.

Market Impact and Growth

Investors are closely monitoring the adoption of oral obesity drugs, which could significantly expand the market by attracting patients who are hesitant to use injectable therapies. This format may also help alleviate the supply chain constraints that have affected popular injectable drugs.

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Analysts project the total market for obesity treatments could exceed $100 billion annually in the U.S. alone by 2030. Novo Nordisk itself has forecast that oral GLP-1 treatments could constitute more than a third of the weight-loss market by that year. Yuffa also noted that Lilly's injectable drug, Zepbound, has seen strong uptake in a Medicare pilot program, with 60% to 70% of enrollees being new to these types of treatments.

Global Competition

Beyond the U.S., Yuffa addressed the emergence of generic competition for Novo Nordisk's drugs in markets like India and Canada. He stated that while the launch of lower-cost generics can reduce market share, it also expands the overall patient pool.

Yuffa added that despite this competition, the absolute sales volume for Mounjaro, Lilly's brand for the same drug outside the U.S., continues to grow in those markets. This suggests that the increasing awareness and accessibility of GLP-1 treatments are driving overall market growth for all players.