The Weighty Matters of GLP-1s

Everyone’s been murmuring about Ozempic, haven’t they? It’s become rather the conversational piece at polite society gatherings – or, more accurately, in the waiting rooms of physicians. A drug originally intended to coax the blood sugar of the afflicted into something resembling order, it’s taken on a second life as a rather effective means of… reducing one’s circumference. Part of the burgeoning GLP-1 class of pharmaceuticals, it’s a fascinating illustration of how remedies, like cats, often land on their feet, even if the landing isn’t precisely where they were aimed.

Novo Nordisk, the alchemists behind Ozempic, were first to market with these hormonal tinkerings back in 2017, and enjoyed a comfortable lead for a time. But the market, as any seasoned goblin trader will tell you, is a fickle beast. Recently, another player has swaggered onto the scene, rather like a particularly well-fed troll demanding a larger share of the bridge toll. So, if you’re an investor seeking a champion in this particular gold rush – and let’s be honest, who isn’t? – it might be prudent to forget about Ozempic. The real action, it appears, is with a different giant entirely.

How do GLP-1 drugs work?

Let’s briefly delve into the mechanics of these elixirs. GLP-1 drugs operate by subtly influencing the digestive system – a complex network of pipes, valves, and grumbling noises, even in the best of us. They nudge the hormonal pathways involved in regulating blood sugar and, rather cleverly, suppressing the appetite. The result? Those struggling with diabetes find some relief, and those seeking a slimmer silhouette… well, they find that too. Novo Nordisk’s semaglutide, marketed as Ozempic for diabetes and Wegovy for, shall we say, ‘enhanced aesthetics’, has been at the forefront of this revolution.

However, the winds have shifted. The company currently enjoying a rather robust advantage is Eli Lilly (LLY 1.41%). They produce tirzepatide, sold as Mounjaro for diabetes and Zepbound for weight loss. These concoctions arrived on the scene a bit later than Novo’s, but have swiftly overtaken them in the race for market dominance.

In the United States, Lilly seized the lead approximately a year ago and has been steadily increasing its share of the pie. Currently, they hold a commanding 60% of the market, while Novo’s portion has dwindled to 39%. A rather significant swing, wouldn’t you agree? It suggests that either Novo’s potions have lost their potency, or Lilly’s are simply… more persuasive.1

Lilly recently reported revenue growth of truly astonishing proportions for both Mounjaro and Zepbound. Together, these drugs generated over $11 billion in revenue. That’s a lot of gold, even by dwarfish standards.

Loading widget...

Why is this company a leader?

The secret to Lilly’s success isn’t simply a superior potion, though that certainly plays a role. They’ve demonstrated a remarkable ability to ramp up manufacturing, ensuring a steady supply of their product reaches patients. This might seem a trivial detail, but consider this: both semaglutide and tirzepatide were plagued by shortages a couple of years ago. A remedy is useless if it remains locked in a warehouse, isn’t it?

More importantly, Lilly conducted a head-to-head comparison of Zepbound versus Wegovy, and the results were rather telling. Zepbound demonstrably helped patients lose more weight. This, unsurprisingly, prompted a shift in prescribing habits, with both patients and physicians increasingly favoring the Lilly product. It’s a simple principle, really: people prefer remedies that work.2

Novo Nordisk recently launched a Wegovy pill – a welcome development, as the existing GLP-1s are administered via injection, a process not universally beloved. However, Lilly is poised to challenge them in this arena as well. Their oral weight loss candidate is currently under regulatory review, and, unlike the Wegovy pill, doesn’t require strict dietary restrictions. A decidedly more hassle-free option, wouldn’t you say? It suggests a certain… understanding of human nature.

All of this points to the likelihood that Lilly will continue to expand its share of this lucrative market, making it a potentially excellent investment for the long-term investor. It’s a reminder that in the world of pharmaceuticals, as in the world of magic, the most potent ingredient isn’t always the rarest, but the most effectively delivered.

1One must also consider the possibility of subtle enchantments woven into the manufacturing process. It’s a technique rarely discussed in polite company, but surprisingly effective.

2Though, of course, the definition of ‘work’ is often subject to debate, particularly when involving promises of effortless weight loss.

Read More

2026-02-19 15:12