Weight-Loss Drug Companies Battle it out to Lead In The Battle of the Bulge

The summer heat will soon arrive, and consumers seeking weight loss drugs to aid in health or appearance weight reduction have proven that the weight-loss drug market could lead to significant gains.

Eli Lilly’s (LLY) shares are enjoying a surge in Tuesday’s morning trade following the release of its Q1 earnings results. A striking year-over-year revenue upswing of 26% was recorded, bringing revenue to $8.77 billion. Although this figure did not meet the estimated $8.92 billion, it’s certainly not all doom and gloom for the pharmaceutical behemoth. In fact, Eli Lilly upped its yearly sales projection by $2 billion, a move inspired by the relentless demand for its GLP-1 weight-loss medications, Mounjaro and Zepbound.

Senior analyst at Sydbank, Soren Lontoft Hansen, mentioned in his report that the growth of Novo Nordisk’s (NVO) flagship GLP-1 medications for type 2 diabetes and obesity have been propelling the company forward, projecting an impressive 26% increase in overall sales for GLP-1 diabetes therapies, reaching DKK33.7 billion this quarter. The force behind this significant quarterly rise can largely be attributed to the diabetes medication, Ozempic, with Hansen forecasting a robust 32% annual surge in its sales.

Eli Lilly’s and Novo Nordisk’s projected outlooks for the quarter should not sway any potential investors looking to beef up their portfolio gains.