Weight Loss Drug Competition - FDA Approves Expanded Use Of Eli Lilly's Blockbuster Tirzepatide For Weight Loss, Undercutting Novo Nordisk's Price

The FDA has approved Eli Lilly And Co's LLY Zepbound (tirzepatide) injection, the first and only obesity treatment of its kind that activates both GIP (glucose-dependent insulinotropic polypeptide) and GLP-1 (glucagon-like peptide-1) hormone receptors. 

The active ingredient in the drug, tirzepatide, has already been approved for Type 2 diabetes under the name Mounjaro since May 2022.

Mounjaro (Type 2 diabetes injection) Q3 sales reached $1.41 billion compared to $187.3 million a year ago.

The approval was based on results from the phase 3 SURMOUNT-1 and SURMOUNT-2 trials. At the highest dose (15 mg), people taking Zepbound lost on average 48 lb., while at the lowest dose (5 mg), people lost on average 34 lb. (compared to 7 lb. on placebo).

Additionally, 1 in 3 patients taking Zepbound at the highest dose lost over 58 lb. (25% of body weight), compared to 1.5% on placebo.

Zepbound is expected to be available in the U.S. by the end of the year in six doses (2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, 15 mg) at a list price of $1,059.87, which is approximately 20% lower than Nova Nordisk A/S's NVO semaglutide 2.4 mg injection for weight loss (Wegovy and Ozempic). 

People who are commercially insured with coverage for Zepbound may be eligible to pay as low as $25 for a 1-month or 3-month prescription.

People who are commercially insured without coverage for Zepbound may be eligible to pay as low as $550 for a 1-month prescription of Zepbound, approximately 50% lower than the list price.

Price Action: LLY shares are up 1.99% at $611.84 on the last check Wednesday.