A number of clinical trial data provided a peek into the stiff competition developing in the obesity treatment space as three drug giants battle for a piece of what is estimated to be a $100 billion market by the end of the decade.
Novo Nordisk (NVO), the market leader, currently has two drugs on the market approved for Type 2 diabetes (Ozempic) and obesity (Wegovy) — both of which are injectables. It also has Rybelsus, its pill for Type 2 diabetes, which the company is also studying for treating obesity.
Results from a Phase 3 trial show the pill, at a higher dosage, was effective in reducing weight by 15% for participants.
Novo Nordisk's greatest competition remains Eli Lilly (LLY). The two are already fierce competitors in the diabetes care and insulin space, and Eli Lilly has a number of competing products on the market and in the pipeline.
Eli Lilly announced a Phase 2 data last week for its oral candidate, orforglipron, showing up to 14.7% weight loss. On Monday, it revealed Phase 2 data for its experimental weight loss injection, retatrutide — showing up to 24% weight loss.
The latter is a different subclass of drugs, but shows better data than the company's current Type 2 diabetes injectable, Mounjaro. Eli Lilly is also pursuing FDA approval for Mounjaro as a weight loss option for those without diabetes.
Pfizer (PFE), meanwhile, is finding its footing in the oral treatment race. Pfizer said it would pursue its twice daily pill, danuglipron, over its once daily candidate, lotiglipron, due to concerns of elevated liver damage risk in early stage trials. The company is moving the drug into Phase 2 to figure out the most effective dosing, but said it will also work on trying to make it a once daily pill, in order to compete with Rybelsus and orforglipron. In that regard, Pfizer is a laggard.
Meanwhile, insurance coverage remains a hurdle to access. Due to concerns that patients may have to stay on the drugs forever to keep the weight off, insurers are wary of covering them. And though a new study showed half of U.S. adults would be willing to pay $100 per month for a weight loss drug, the cost of Wegovy and Ozempic ranges from more than $800 to more than $1,300 out of pocket.
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