Novo CEO defends Lilly suit as Wegovy pill tops 5 million

Novo Nordisk CEO Mike Doustdar defended the drugmaker's lawsuit against Eli Lilly, saying ads comparing weight-loss drugs omit its newer 7.2 mg Wegovy dose.

"I am a big fan of competition. I think competition has to be fierce, but I also think competition has to be fair," Doustdar said on CNBC's "Mad Money." "I believe that patients deserve to know the full truth together with their physicians before they make a choice of what product to take."

The lawsuit, filed last month, targets Lilly advertising that cites a head-to-head trial showing Zepbound's maximum tolerated dose produced 20.2 percent average weight loss over 72 weeks, versus 13.7 percent for the older 2.4 mg Wegovy dose. Novo's newer 7.2 mg Wegovy, approved by the FDA in March, delivered about 19 percent average weight loss in a company study, narrowing the gap to roughly 47 pounds versus Lilly's 50 pounds.

"We believe that the advertisements that they have been doing, while truthful, is not the complete picture," Doustdar said. "It's built on older generations of these products and old doses."

Lilly defended its advertising. "We're glad to see Novo Nordisk's own CEO confirm what we've said all along: Lilly's advertising is truthful," a spokesperson said, adding that no head-to-head trial supports the claim that Wegovy HD matches Zepbound.

The legal fight comes as competition intensifies across the GLP-1 market. Since the suit was filed, Novo shares have fallen 6 percent while Lilly has climbed nearly 4 percent. Injectable Wegovy sales were flat year over year in the second quarter, and Novo narrowed its 2026 outlook to a 0-6 percent decline in adjusted sales and operating profit from a prior 4-12 percent range.

Doustdar acknowledged Lilly has gained share in injectables. "There is no secret that Lilly has been quite successful, actually, in having volume uptake and market share uptake above and beyond Novo," he said.

The company is betting on its oral Wegovy pill, launched in early January, which Doustdar said has surpassed 5 million U.S. prescriptions and called "the best product launch in the history of pharmaceuticals." Lilly's rival pill Foundayo, approved by the FDA on April 1, missed expectations in its latest quarter as the company builds consumer awareness. Foundayo won approval in Britain on Monday, the first European market for the drug.

The outcome tests whether Novo can defend its obesity franchise as Lilly expands across injectables and oral treatments. Investors will watch the next quarterly report for Wegovy pill uptake and any resolution of the advertising dispute.

This article is for informational purposes only and does not constitute investment advice.