Escalating Demand for Obesity Drugs Creates Time-Sensitive Race for Eli Lilly, Novo Nordisk

Eli Lilly LLY is aggressively pursuing collaborations with outsourcing partners to ramp up the production of its obesity drug, Zepbound (tirzepatide), as it inks deals with key players such as National Resilience and BSP Pharmaceuticals for the filling and “finishing” of its injector pens.

BSP Pharmaceuticals and National Resilience are among the specialized contract manufacturers capitalizing on the obesity drug boom. 

The global contract development and manufacturing market is poised to grow from $72 billion to $90 billion in the next two years, highlighting the urgency for increased fill-finish capacity.

Also Read: Eli Lilly’s Commercial Moat, Competitor Landscape: BofA Emphasizes Strength in Incretin Space, Undervalued Assets.

Eli Lilly and Novo Nordisk A/S NVO have invested billions to address bottlenecks in active ingredient production and fill-finish as the companies grapple with a shortage of the most sought-after drugs for diabetes and weight loss.

Despite Novo Nordisk’s recent acquisition of three “fill-finish” plants from Catalent Inc CTLT, the company will not be able to scale up production until 2026, the Financial Times noted.

National Resilience, a recipient of a $410 million loan from the U.S. defense department, aims to fill Zepbound injector pens at its Cincinnati plant, with a total capacity of 200 million doses by 2025. 

Meanwhile, the Financial Times noted that BSP is gearing up to produce 61 million injectable doses of non-cancer drugs by the end of next year.

As Eli Lilly accelerates production through external collaborations, challenges in the fill-finish stage persist due to close-to-full production capacities. 

Citing industry experts, the Financial Times highlights that while oral weight-loss pills are under development by major players, supply constraints may persist for several years. 

The global contract drug manufacturer market, though expanding, may not provide an immediate solution to the escalating demand for obesity drugs, leaving Eli Lilly and Novo Nordisk in a race against time.

Price Action: LLY shares are up 1.19% at $786.85 during the premarket session on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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