Pay and go!
Losing weight is big business. Eli Lilly & Co is launching a new weight-loss drug that will cost $1,059.87 for a month’s supply. The branded Zepbound, contains exactly the same active ingredient as the company’s diabetes drug Mounjaro.
The $1,059.87 price tag is still cheaper than Wegovy, a similar weight-loss drug made by Novo Nordisk A/S, which is $1,349 for a month’s supply.
In trials, patients who received the highest dose of Lilly’s Zepbound lost on average 18% of their body weight, the US Food and Drug Administration said in a statement.
Eli Lilly & Co. won US approval for the new drug to also treat obesity, unlocking blockbuster sales potential and sparking a battle for dominance of a market that’s expected to hit $100 billion by 2030.
Lilly’s shares rose 3.2% on Wednesday, closing at a record high of $619.13. They’ve gained 69% so far this year.
The mania over weight-loss drugs is drawing responses from all kinds of industries like airlines, dialysis centers and big box chains like Walmart, sending stock markets into a frenzy. Mounjaro, which Lilly couldn’t market for obesity prior to Wednesday’s approval, was publicized by Hollywood where it also became a punchline.
The last time there was this much hype over a new drug was for Viagra, which was approved in 1998.
The promise of these drugs has boosted Lilly and Novo to record heights. Lilly is now the most valuable health-care company in the world, while Novo, the maker of Ozempic and Wegovy, became Europe’s most valuable company in September.
The intense popularity of the drugs has also led to ongoing supply shortages, though. Both companies have been investing heavily to make more of their drugs, and Novo is limiting the sale of Wegovy to new patients in order for people who are already on the drug to stay on it.
Lilly is studying the drug in younger patients, which could further boost sales. Lilly recently started a trial in kids ages 12 and up with obesity, and is planning to do a similar one in patients as young as six years old.
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