Weight loss pharmaceutical giants Eli Lilly and Novo Nordisk are leading a transformation - Which pharmaceutical stock shows the most promise in weight loss domain?
Eli Lilly and Novo Nordisk: Robust Growth Expected in Weight Loss and Diabetes Markets
Eli Lilly and Novo Nordisk, two global pharmaceutical powerhouses, are driving growth in the weight loss and type 2 diabetes markets with their GLP-1 receptor agonist drugs. Notable examples include Mounjaro and Zepbound from Eli Lilly, and semaglutide, the active ingredient in Novo Nordisk's Ozempic, Wegovy, and Rybelsus.
The global market for these medications is experiencing a robust expansion, fueled by the escalating global prevalence of obesity and diabetes, increased clinical indications, and broader insurance coverage. In 2024, the global semaglutide market was valued at $28.43 billion and is projected to reach $93.6 billion by 2035, growing at a compound annual growth rate (CAGR) of 10.47%.
David A. Ricks, Chairman and CEO of Eli Lilly, reported a revenue increase of around 32 percent compared to the previous year in 2024, with similar growth forecasted for 2025. By contrast, Novo Nordisk could not quite keep pace in 2024, but also expects double-digit growth in revenue and earnings for 2025.
The competition is intense, with both companies vying for market share. Eli Lilly's Mounjaro and Zepbound have shown remarkable sales growth, with Zepbound sales increasing by 347% year-over-year in Q1 2025. Novo Nordisk secured a significant insurance coverage win with CVS Caremark in 2024, making Wegovy the preferred GLP-1 medicine on CVS's largest commercial formularies as of July 2024.
Both companies are investing in expanding indications and improving drug accessibility. They are also pursuing novel candidates, such as oral formulations and combination therapies, to maintain their competitive edge. Clinical trials for cardiovascular risk reduction and neurodegenerative diseases like Parkinson's continue, with promising findings that could significantly broaden the market for these medications.
In terms of stock performance, Eli Lilly expects 45% revenue growth in Q1 2025, with Mounjaro and Zepbound sales skyrocketing. However, increased research expenses have led to moderated EPS guidance. Novo Nordisk expects 13–21% revenue growth and 16–24% operating profit growth in 2025, despite some moderation in GLP-1 penetration in the US market.
Both companies are well-positioned to benefit from continued market expansion, with strong pipelines, key drug approvals, and promising research in new therapeutic areas. The expansion into cardiovascular disease and Parkinson's disease could unlock significant new revenue streams in the coming years.
In summary, Eli Lilly and Novo Nordisk are poised for strong growth in the weight loss medication market, with potential upside from expanded indications, improved market access, geographic expansion, and pipeline innovation. Both companies are actively pursuing these opportunities to capitalize on the market's growth potential.
- The robust expansion of the weight loss and diabetes markets has led Eli Lilly and Novo Nordisk to focus on science and business, particularly in the areas of fitness-and-exercise, health-and-wellness, and weight-management.
- In the finance world, the growth of both companies is being closely monitored by investors, with Eli Lilly expecting 45% revenue growth in Q1 2025 and Novo Nordisk projecting 13–21% revenue growth in 2025.
- As part of their strategies to maintain their competitive edge, Eli Lilly and Novo Nordisk are exploring novel candidates such as oral formulations and combination therapies, indicating an interest in stock-market investments and research and development in the pharmaceutical industry.
- The expected growth in the weight loss medication market, influenced by factors like expanded indications, improved market access, geographic expansion, and pipeline innovation, presents opportunities for these pharmaceutical powerhouses to potentially increase their revenues and contribute positively to their respective businesses.
