The CEO Of Novo Claims That the Obesity Industry Won’t Be a Winner-Take-All Contest with Lilly

Investors are underestimating the need for differentiation among obesity medications, according to CEO Mike Doustdar of Novo Nordisk (NOVOb.CO), and novel treatment choices such pills will prevent it from becoming a winner-take-all struggle with rival Eli Lilly.

In a sector that some predict could be worth more than $100 billion annually by 2030, Novo is under pressure to reclaim ground lost to Lilly’s (LLY.N). Novo was the first to introduce Wegovy, a highly successful GLP-1 weight-loss injectable, to the U.S. market.

Patients are only now starting to realize which GLP-1 medication is best for them, according to Doustdar, who took over at the Danish pharmaceutical company a year ago. He anticipates more segmentation as new medications are licensed. Over 100 million adults in the United States are considered obese.

In an interview with Reuters on Wednesday, Doustdar stated, “The investor community currently believes that this is supposed to be a zero-sum game between two players—there is a loser and a winner.

“It won’t be Coke against Pepsi when it comes to GLP-1s and obesity and weight-loss medications. Coke, Pepsi, Fanta, Dr. Pepper, and Red Bull will be served. “People have the freedom to choose, and they are thirsty,” he stated.

While Lilly shares have continued to rise, the company’s market valuation has surpassed $1 trillion, while Novo shares have drastically declined since reaching a peak in 2024.

Doustdar likened Novo’s obesity portfolio to its insulin business for diabetes, where the company distributes 50% of the world’s insulins under 12 different brands instead of controlling the market with a single therapy.

While they all lower sugar, they also have varied effects. “GLP-1s all help people lose weight, but they all have different effects,” he stated.

Investors are particularly interested in Novo’s new Wegovy tablet and its pipeline of investigational medications.

According to Doustdar, the Wegovy pill currently holds a 90% market share in the oral GLP-1 market, partly due to data demonstrating superior weight loss compared to Lilly’s Foundayo pill.

He said it was difficult to forecast what percentage of patients will wind up using tablets, but added “we’re in a very good place if it becomes a 50-50 market” between oral drugs and injections.