Eli Lilly Stock Hits 3-Week High, Boosts Retail Mood On Zepbound’s Edge Over Wegovy In Weight-Loss Trial Showdown

Eli Lilly shares rose nearly 1.6% on Wednesday morning to three-week highs after the company unveiled promising results from a clinical trial that pitted its popular weight-loss drug against Novo Nordisk’s Wegovy.

The study, sponsored by Lilly, showed that its Zepbound outperformed Wegovy, boosting retail investor sentiment.

In the Phase 3b trial involving adults with obesity or weight-related medical problems, Zepbound demonstrated a 47% greater relative weight loss compared to Wegovy. 

Participants lost an average of 20.2% body weight on Zepbound versus 13.7% on Wegovy over 72 weeks. 

Moreover, 31.6% of Zepbound users achieved at least 25% weight loss, compared to 16.1% of Novo’s Wegovy users.

Zepbound also met all primary and secondary endpoints, with a safety profile consistent with prior studies. 

Common side effects, primarily gastrointestinal, were mild to moderate.

Retail sentiment for Lilly surged to ‘bullish’ levels on Stocktwits following the news, with message volumes climbing.

Meanwhile, Novo’s stock also rose 1%, maintaining its 'bullish' retail sentiment. 

Some users remained skeptical of Lilly’s trial data due to potential bias as the trial was conducted and funded by the company.

The findings position Lilly to challenge Novo in the burgeoning GLP-1 obesity treatment market, projected to reach $130 billion by 2030. 

Novo has led the market with semaglutide-based Wegovy and Ozempic, which also showed cardiovascular benefits in separate trials.

Lilly plans to publish the latest findings in a peer-reviewed journal and present them at an upcoming medical meeting. 

Its tirzepatide, marketed as Zepbound for obesity in the U.S. and Mounjaro for type 2 diabetes, is gaining traction globally. Both drugs brought in over $4 billion in sales for the third quarter.

Year-to-date, Lilly’s stock has surged nearly 40%, outperforming Novo’s 8% gain. 

As Lilly moves toward becoming the first-ever pharma company to hit a trillion-dollar valuation, analysts and investors are closely watching its progress in the competitive obesity drug market.

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