Battle for China's Weight Loss Market: Eli Lilly's Tirzepatide vs. Novo Nordisk's Wegovy

Eli Lilly announced its weight loss drug, Tirzepatide, has gained regulatory approval in China, escalating competition with Novo Nordisk's Wegovy. Both firms are vying for a share in the burgeoning weight-loss market, projected to reach $100 billion by the decade's end. Novo Nordisk's Wegovy had already secured approval back in June, boosting its stock prices. Both companies are scaling up production to meet rising demand for GLP-1 agonists, originally designed for diabetes but now popular for weight management.

Eli Lilly announced on social media Friday that its weight loss drug, Tirzepatide, has received approval from Chinese regulators. This development heightens the rivalry with Danish competitor Novo Nordisk in the crucial Asian market.

Novo Nordisk's weight loss medication, Wegovy, gained approval in China in June. This approval in the world's second-largest economy, which also has the highest number of overweight or obese individuals, sent Novo Nordisk's share prices skyrocketing. As of now, Eli Lilly has not provided specific details on when sales of Tirzepatide will commence in China or the number of doses to be supplied. Tirzepatide is the key ingredient in Eli Lilly's diabetes drug, Mounjaro, as well as its weight loss drug, Zepbound, both also approved in China.

Eli Lilly and Novo Nordisk are ramping up production in a global weight-loss market anticipated to hit at least $100 billion by the end of the decade. Both companies' obesity treatments fall under the category of GLP-1 agonists, initially created for diabetes treatment but now widely used for weight loss, helping patients shed up to 20% of their body weight and driving unprecedented demand.

(With inputs from agencies.)