Lilly's Strategic Branding Move For Weight Loss Drug Sets Stage For Long Term Success - Analyst
Portfolio Pulse from Vandana Singh
The FDA has approved Eli Lilly's Zepbound, the first and only obesity treatment. The drug is expected to be available in the U.S. by the end of the year at a price 20% lower than Novo Nordisk's semaglutide 2.4 mg injection for weight loss. BMO Capital predicts the obesity market could reach $70 billion in the U.S. and $100 billion worldwide by 2035. Lilly's dual branding of tirzepatide as Mounjaro for Type 2 Diabetes and Zepbound for weight management is seen as a strategic move for long-term competitiveness. Truist remains bullish on Zepbound/Mounjaro, predicting peak global sales of $44 billion.
November 09, 2023 | 6:44 pm
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NEGATIVE IMPACT
Novo Nordisk's semaglutide 2.4 mg injection for weight loss is now facing competition from Eli Lilly's newly approved Zepbound, which is priced 20% lower.
The approval and lower pricing of Eli Lilly's Zepbound could potentially impact Novo Nordisk's market share in the obesity treatment market.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Eli Lilly's Zepbound has been approved by the FDA, marking it as the first and only obesity treatment. The company's strategic dual branding of the drug for both weight management and Type 2 Diabetes is seen as a move for long-term competitiveness.
The FDA approval of Zepbound is a significant milestone for Eli Lilly. The company's strategic dual branding of the drug for both weight management and Type 2 Diabetes could potentially increase its market share and competitiveness in the long term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100