Key Takeaways
Eli Lilly’s new oral weight-loss drug Foundayo saw prescriptions in its second week of launch trail its rival from Novo Nordisk by a factor of five, signaling an early lead for the Danish drugmaker in a new front for obesity treatments.
"While we believe comparisons early into launch should be considered immaterial, Foundayo's uptake this week is likely to be received negatively," RBC Capital Markets analyst Trung Huynh said in a note.
In its second week on the market, Lilly's Foundayo drew 3,707 prescriptions, an increase from 1,390 in its debut week, according to IQVIA data cited by analysts. By comparison, Novo Nordisk’s Wegovy pill, which launched in January, garnered 18,410 prescriptions in its equivalent second week, up from 3,071 in its first.
The initial sales data is a key test of whether Lilly can challenge Novo's first-mover advantage in the oral obesity drug market, which investors see as the next major battleground. The slow start for Foundayo sent Eli Lilly shares down 1.5% in premarket trading, while U.S.-listed shares of Novo Nordisk rose 2%.
J.P. Morgan analyst Chris Schott called the initial numbers for Foundayo a "somewhat slower ramp," adding that it is "not surprising given Wegovy's advantages in time to market and brand recognition." Novo's pill had been available since January, while Lilly's was approved on April 1 and became broadly available on April 9.
The competition in oral tablets is critical for both pharmaceutical giants. In the market for injectable treatments, Eli Lilly gained an edge after its Zepbound drug demonstrated superior weight-loss effects compared to Novo Nordisk's injectable Wegovy in head-to-head trials. Success in the oral market could help Novo recapture momentum from its U.S.-based rival.
The early prescription figures place heightened importance on the coming months of sales data to establish a clearer trend. Investors will be closely watching whether Lilly's marketing efforts and the convenience of Foundayo, which has fewer restrictions on how it's taken compared to oral Wegovy, can close the initial gap.
This article is for informational purposes only and does not constitute investment advice.
