Novo CEO Says Obesity Drugs Market Will Not Be Winner-Take-All
The market for obesity drugs is unlikely to become a winner-take-all contest between Novo Nordisk and Eli Lilly, according to Novo CEO Mike Doustdar. He said patients will have more treatment choices as new medicines enter the market.
Novo Nordisk was the first company to bring Wegovy, its widely used GLP-1 weight-loss injection, to the US market. The company has since faced growing competition from Eli Lilly as demand for weight-loss treatments continues to increase.
Doustdar said that investors may be looking at the obesity drugs market in a narrow way by focusing mainly on the rivalry between the two companies. Doustdar expects that the obesity drugs market will become more divided as new treatments are introduced and patients will begin to choose medicines that fit their needs.
These comments come while the global obesity treatment market is expected to grow a lot in the coming years. More than 100 million adults in the United States are considered obese, which creates a big potential market for new treatments.
Novo Nordisk is looking to strengthen its position by launching a Wegovy tablet and other medicines that are in its development pipeline. The company believes oral treatments could become an important part of the market alongside injections.
Doustdar compared Novo Nordisk’s obesity business with its insulin operations. The company sells several insulin products around the world rather than relying on a single treatment, suggesting that a similar pattern could develop in weight-loss medicines.
GLP-1 drugs have become increasingly popular because of their ability to help people lose weight. However, Doustdar said different treatments can have different effects, meaning patients may not all choose the same medicine.
The growing range of obesity drugs is also changing the competition between Novo Nordisk and Eli Lilly. Lilly’s shares have continued to rise, while Novo Nordisk has seen its stock decline significantly from its 2024 peak.
Novo is particularly focused on the performance of its Wegovy tablet. Doustdar said the tablet currently has a strong position in the oral GLP-1 market and pointed to clinical data showing weight-loss results compared with Lilly’s oral treatment.
He also said it was difficult to predict how many patients would eventually choose tablets instead of injections. A market split evenly between oral and injectable treatments would still leave Novo in a strong position, he said.
The competition is expected to intensify as pharmaceutical companies introduce more treatments. For patients, the expanding obesity drugs market could mean more choices in how weight-management conditions are treated.
Novo Nordisk’s latest comments suggest the company expects the market to develop across several products rather than being controlled by a single winner. With new medicines continuing to emerge, competition between major drugmakers is likely to remain strong.