Eli Lilly's Tirzepatide Gains Chinese Approval, Escalates Competition with Novo Nordisk

Eli Lilly announces that its weight loss drug, tirzepatide, has been approved by Chinese regulators. This move intensifies the company's rivalry with Novo Nordisk in Asia's crucial market. Both firms are ramping up production to meet the growing global demand for weight-loss treatments, expected to hit $100 billion by decade's end.

Eli Lilly has revealed via social media that Chinese regulators have approved its weight loss drug, tirzepatide. This escalates the company's competition with Danish rival, Novo Nordisk, in the crucial Asian market. The drugmaker's shares rose 1.6% to $862.39 in midday trading.

Novo Nordisk's weight loss drug, Wegovy, received Chinese regulatory approval in June, boosting its stock price. China is the world's second-largest economy and has the highest number of overweight or obese individuals. Eli Lilly has not yet disclosed when it will begin sales of tirzepatide in China or the number of doses to be supplied. Tirzepatide is the active ingredient in Eli Lilly's U.S. diabetes drug Mounjaro and weight-loss drug Zepbound, both of which are also approved in China.

The rivalry between Eli Lilly and Novo Nordisk continues to heat up, with both companies striving to increase production capacity amid a weight-loss market that is projected to reach $100 billion globally by the decade's end. Both firms' obesity treatments are classified as GLP-1 agonists, drugs initially developed for diabetes that help patients lose up to 20% of their weight, driving extraordinary demand.

(With inputs from agencies.)