Eli Lilly's Weight-Loss Drug Expected to End Shortage in the U.S., CEO Says
In breaking news, Eli Lilly (NYSE:) anticipates that its highly sought-after weight-loss drug will soon be readily available in the United States. According to a report by Bloomberg News, the company's CEO, David Ricks, revealed that the shortage of Lilly's drug, tirzepatide, marketed as Mounjaro for diabetes and Zepbound for weight management, will be resolved in the coming days.
The U.S. Food and Drug Administration has listed certain doses of Mounjaro and Zepbound as limited in supply, with Mounjaro being on the shortage list since late 2022. The agency is currently evaluating the availability of backorders and the balance of supply and demand before removing the drug from the shortage list.
Ricks mentioned in an interview with Bloomberg in Paris that Lilly expects Zepbound's supply to remain constrained in the short and medium term as production capacity is increased. Eli Lilly and Novo Nordisk (NYSE:) are in a race to upscale production in the weight-loss drug market, estimated to reach $150 billion by the early 2030s. Both companies' obesity treatments fall under the category of GLP-1 agonists, originally developed for diabetes.
GLP-1 drugs have demonstrated significant weight loss benefits for patients, with an average reduction of up to 20% in body weight, driving high demand for these medications. Novo Nordisk produces the diabetes drug Ozempic and its weight-loss counterpart Wegovy.
In a separate development, Lilly announced that Zepbound has proven effective in reducing the risk of hospitalization, mortality, and other adverse outcomes for obese adults with a common type of heart failure.
In conclusion, the anticipated end of the shortage for Eli Lilly's weight-loss drug could have significant implications for the pharmaceutical industry and patients seeking effective treatments for weight management. Investors should monitor developments in this market closely as it could impact the financial performance of companies like Eli Lilly and Novo Nordisk.