the health
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Joaquim Cardoso MSc
Founder and Chief Researcher, Editor & Strategist
March 28, 2024
What is the message?
The Bloomberg article highlights how Eli Lilly & Co. missed a significant opportunity in the weight-loss drug market due to skepticism about obesity as a disease and concerns about consumer adoption.
Despite initial setbacks, the company has recently entered the market with Zepbound, poised to become the bestselling drug in history.
This summary is based on the article “How a Lucky Break Fueled Eli Lilly’s $600 Billion Weight-Loss Empire” published by Bloomberg and written by Madison Muller on January 25, 2024.
What are the key points?
Missed Opportunity: Eli Lilly ignored the potential of GLP-1 hormone-based weight-loss drugs three decades ago, focusing instead on other areas like diabetes and cancer treatments. This decision led to the loss of potential revenue and market dominance.
Innovative Rivalry: Novo Nordisk capitalized on the opportunity, developing successful GLP-1-based drugs for weight loss, dominating the market. Novo’s Wegovy and other products have generated billions in revenue, overshadowing Eli Lilly’s late entry into the market.
Zepbound’s Entry: Despite past setbacks, Eli Lilly’s Zepbound, a GLP-1-based weight-loss shot, enters a lucrative market with high demand and promising efficacy. It is positioned to challenge Novo Nordisk’s dominance and become a market leader.
Financial Outlook: Investors are optimistic about Eli Lilly’s future, with its stock price soaring and expectations of dominating the obesity drug market by 2030. However, there are concerns about inflated expectations and potential challenges ahead, including competition and safety issues.
What are the key statistics?
Eli Lilly’s current market value is close to $600 billion, indicating high investor confidence in its future prospects.
Novo Nordisk’s GLP-1 drugs, including Wegovy, have generated an estimated $33 billion in revenue so far.
Lilly’s Zepbound is priced at $1,060 per month in the US, offering a 20% discount compared to Novo’s competing product, Wegovy.
What are the key examples?
Eli Lilly’s skepticism about obesity treatments led to missed opportunities, while Novo Nordisk’s focus on innovation and commitment to GLP-1 research propelled its success in the market.
Zepbound’s promising efficacy, demonstrated in clinical trials showing significant weight loss, positions it as a strong contender in the obesity drug market.
Conclusion
With high investor confidence and promising efficacy, Zepbound has the potential to challenge Novo Nordisk’s dominance and become a market leader.
However, the company must navigate challenges such as competition, safety concerns, and managing inflated expectations to sustain its success in the long term.
To read the original publication, click here.
