LLY Vs. NVO: Whose Oral Obesity Drug Had Better Launch Reception?

• While Lilly’s Foundayo was FDA-approved earlier this month, Novo’s Wegovy pill was greenlighted by the agency in December. 
• Lilly’s Foundayo was prescribed 3,707 times in its second week on the market, while Novo’s Wegovy pill was prescribed 18,410 times. 
• Oral obesity pills are expected to be the next major innovation in the obesity market, doing away with needles and offering customers more flexibility and ease.

Eli Lilly and Co. (LLY) oral obesity drug Foundayo reportedly generated 3,707 prescriptions in the U.S. during its second week on the market — a noticeably softer launch than rival Novo Nordisk’s (NVO) oral Wegovy pill.

Shares of LLY closed down 4% on Friday, while NVO shares rallied nearly 7%.

Reuters reported the numbers on Friday, citing IQVIA data. The drug was prescribed 1,390 times in its debut week.

In comparison, Danish drugmaker Novo Nordisk’s oral weight-loss pill, called Wegovy pill, was prescribed 18,410 times in the second week and 3,071 in the first four days.

Lilly’s drug prescriptions currently amount to just 20% of what Novo achieved in two weeks with the Wegovy pill.

Foundayo Approval

Foundayo was approved by the U.S. Food and Drug Administration (FDA) earlier this month for use in combination with a reduced-calorie diet and increased physical activity to reduce excess body weight and maintain long-term weight reduction in adults with obesity. The company started shipping the drugs on April 6.  

In a late-stage trial, individuals taking the highest dose of Foundayo and who stayed on treatment lost an average of 27.3 pounds (12.4%) compared to 2.2 pounds (0.9%) with placebo. The drug also led to reductions in many markers of cardiovascular risk, including waist circumference, non-HDL cholesterol, triglycerides, and systolic blood pressure across all doses.

Oral obesity pills are expected to be the next major innovation in the obesity market, doing away with needles and offering customers more flexibility and ease. The FDA approved Novo Nordisk’s oral obesity pill in December. Novo launched it to a commendable reception in January, giving the Danish drugmaker a solid head start against its American competitor.

How Did LLY Retail Traders React?

On Stocktwits, retail sentiment around LLY rose from ‘neutral’ to ‘bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘high’ levels.

A Stocktwits user termed the dip on Friday an opportunity, while noting that there is enough demand for both Novo and Lilly to dominate.

LLY has gained 3% over the past 12 months, while NYSE-listed shares of NVO fell 34%. 

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