Forget Mounjaro: Eli Lilly's Next Big Blockbuster Has Arrived
Over the last couple of years, the pharmaceutical industry has been taken over by glucagon-like peptide-1 (GLP-1) agonists. For now, Denmark-based Novo Nordisk dominates the GLP-1 market, thanks to its deep roster of treatments including Ozempic, Wegovy, Rybelsus, and Saxenda. However, Novo Nordisk's chief rival in the weight loss space shouldn't be slept on.
Eli Lilly, the developer of Mounjaro, has proven that it can compete with Novo Nordisk at a high level. Moreover, the company's sibling treatment to Mounjaro -- Zepbound -- has gotten off to a sizzling start since its approval last November to aid weight loss. With more than $1.2 billion in sales in the three months ended in June, Zepbound has already gained the "blockbuster drug" status given to medications selling more than $1 billion in a year. It's almost enough to make one "forget" about Mounjaro.
Many times, when a new drug receives approval from the Food and Drug Administration (FDA), the approval is granted for treatment of only one condition.
For example, Ozempic is technically only approved to treat diabetes. However, losing weight is often a byproduct of taking diabetes medications. But since Ozempic is not formally approved for chronic weight management, Novo Nordisk released a separate drug called Wegovy aimed specifically at obesity care. It's important to note that Ozempic and Wegovy share the same primary compound, semaglutide.
Eli Lilly has followed a similar template to that of Novo Nordisk. Mounjaro is Lilly's response to Ozempic, and is used in treating diabetes. Last year was Mounjaro's first full calendar year on the market. The diabetes medication brought in $5.2 billion in annual sales for Lilly in 2023, making it the company's second-largest source of revenue.
While Mounjaro has no doubt been a monumental success, Lilly was also working on something else in the background. As Novo Nordisk did, Lilly developed an alternative version of its diabetes drug -- Zepbound -- which is aimed at treating obesity and also shares its main ingredient, tirzepatide, with Mounjaro.
Zepbound (Tirzepatide) received FDA approval in November 2023 and has been nothing short of a smash since its launch. During the first quarter of 2024, Zepbound generated $517 million in sales, putting it at an annual run rate of about $2 billion. But according to Lilly's second-quarter earnings report, Zepbound has already demolished its run-rate forecast.
For the quarter ended June 30, Zepbound reported sales of $1.2 billion -- making it a blockbuster drug with less than one year on the market.
The best part? The journey seems to be just getting started.
