Lilly’s Oral Obesity Pill Falls Short Against Wegovy; Market Impact Analyzed

Eli Lilly's experimental GLP-1 pill, designed as a convenient oral alternative to weight-loss injections, achieved 12.4% body weight reduction in a late-stage clinical trial, less significant than its competitor Novo Nordisk's Wegovy. This discrepancy led to a 6.7% drop in Lilly shares, stirring investor apprehension regarding its market position.

Lilly CEO David Ricks addressed these concerns, highlighting the oral pill's safety and scalability. He ensured stakeholders that the priority was its mass-market viability and approval, expected globally in the following year. The drug offers a significant advantage in ease of manufacturing and administration over peptide-based injectables.

Orforglipron's tolerability faced scrutiny due to higher nausea and vomiting rates compared to Wegovy, though no liver issues were reported. Despite challenges, analysts view the weight-loss market as lucrative, anticipating it could soar to $150 billion by the early 2030s, with competing drugs like Lilly's Zepbound and Novo's Wegovy leading the charge.

(With inputs from agencies.)