Novo Nordisk has initiated legal action against Eli Lilly, alleging that Lilly's advertising for its GLP-1 obesity drug Zepbound misleads consumers regarding its effectiveness compared to Novo's Wegovy.
CEO Mike Doustdar emphasized the need for fair competition and transparency, arguing that Lilly's ads reference an outdated version of Wegovy, which does not reflect the newer, higher-dose formulation approved by the FDA.
In a recent head-to-head trial published in The New England Journal of Medicine, Zepbound demonstrated a weight loss of 20.2% over 72 weeks, while the older Wegovy formulation showed a 13.7% reduction. Doustdar contends that the newer 7.2 mg Wegovy formulation, which has shown a weight loss of approximately 19%, should be the basis for comparison.
Eli Lilly has defended its advertising, asserting that it is truthful and that Novo's claims lack supporting clinical trial data. The lawsuit comes amid increasing competition in the GLP-1 market, where Novo's stock has dropped 6% since the lawsuit was filed, while Eli Lilly's shares have risen nearly 4%.
Doustdar acknowledged Lilly's success in gaining market share in injectable weight-loss drugs and highlighted the strong launch of Novo's Wegovy pill, which has surpassed 5 million prescriptions in the U.S. This legal battle and the competitive landscape could significantly influence investor perceptions and market dynamics in the pharmaceutical sector