Supply Chain Shortages Intensify Competition Between Weight-Loss Drug Giants

Eli Lilly's weight-loss drug Zepbound is gaining market share in the U.S., rivalling Novo Nordisk's Wegovy. Supply shortages for both drugs are dictating doctors' prescriptions. Both companies are investing billions to increase manufacturing and meet demand. Analysts predict a 50-50 market split by the end of 2024.

Eli Lilly's weight-loss drug Zepbound is making significant strides in the U.S., posing a strong challenge to Novo Nordisk's Wegovy. Doctors say prescription decisions largely hinge on which drug is currently available at pharmacies as supply shortages persist for both medications.

Since its December launch, Zepbound has captured approximately 40% of the market share, reaching 130,000 prescriptions for the week ending July 19, compared to 200,000 for Wegovy. Separate clinical trials suggest Zepbound leads to slightly higher weight loss than Wegovy, pushing some patients towards the Lilly treatment. However, both companies are struggling to meet the unprecedented demand for their weekly injectable drugs.

Investors are eagerly awaiting supply updates from Novo Nordisk and Lilly, who are set to report quarterly results this week. Novo acknowledges that demand will continue to outstrip supply, while Lilly's CEO anticipates resolving the shortage 'very soon.' Both companies have announced multi-billion dollar investments to boost manufacturing capacities and are expanding into new countries. Analysts forecast a 50-50 market split in the U.S. by late 2024, with Zepbound potentially gaining an edge if supply constraints are resolved.

(With inputs from agencies.)