Financial results from two major players in the obesity and diabetes space are likely to accelerate research and development of new weight-loss treatments, a financial expert has said.
AvaTrade’s chief market analyst, Kate Leaman made the comments after Eli Lilly and Novo Nordisk released their financial results for the fourth quarter of 2024.
Eli Lilly revealed that sales of Mounjaro hit $3.53 billion, while Zepbound brought in $1.91 billion.
The company also raised its 2025 revenue forecast to between $58.0 and $61.0 billion – a strong signal of confidence moving forward.
Meanwhile, Novo Nordisk revealed that sales of Wegovy jumped by 86 per cent last year, while revenue for its other leading obesity and diabetes drug, Ozempic, rose 26 per cent.
Novo shares increased by nearly 5 per cent off the back of the annual results.
Leaman said: “Industry-wide, this success is likely to accelerate research and development in weight-loss treatments.
“Other pharmaceutical companies will want a piece of this booming market and may start ramping up investments in similar drugs.
“There is also a supply chain challenge – demand for these medications is outpacing supply.
“That means Eli Lilly, and the industry as a whole, will likely focus on increasing production capacity to keep up.
“Beyond that, the weight-loss drug market itself could expand.
“More doctors and patients are becoming aware of these treatments, and as they gain acceptance, the potential market size keeps growing.
“As for competition, Novo Nordisk has been dominating with Wegovy and Ozempic, but Eli Lilly’s strong showing could shift market share, possibly even impacting Novo’s stock.”
Weight-loss injections have become increasingly accessible in the UK, both privately and on the NHS.
However, UK pharmacies have called for tougher regulations around online sales of the drugs following concerns that they are being inappropriately prescribed.
Leaman said that the pharma industry should ‘watch out for regulatory attention’:
She said: “The rapid rise and overwhelming demand for these drugs might bring increased scrutiny, leading to potential new guidelines or regulations.
“The bottom line is that Eli Lilly’s earnings don’t just signal strength for the company; they’re shaping industry trends, market dynamics, and investment strategies for years to come.”
