Has Novo Nordisk Finally Found the Catalyst That Could Flip the Script on Eli Lilly?
Novo Nordisk (NVO -1.41%) started the GLP-1 weight-loss revolution that is sweeping the world. Its Wegovy/Ozempic shot was so popular that the company couldn’t keep up with demand. That proved to be a major problem for the company, particularly after competitor Eli Lilly (LLY -0.13%) introduced its own GLP-1 weight-loss drug, Zepbound/Mounjaro, which enabled greater weight loss.
But Novo Nordisk has been fighting back. Right now, that’s all about its Wegovy pill. But a new partnership with Vivani Medical (VANI +1.43%) could flip the script on the entire GLP-1 industry.
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Novo Nordisk is working to get back on top
The healthcare industry is highly innovative and highly competitive. It isn’t surprising at all that Novo Nordisk’s early success in the GLP-1 weight-loss niche didn’t last. But the fact that Eli Lilly introduced a more desirable GLP-1 product should not be taken as an indication that it has a permanent lead.
One of the big problems with early GLP-1 weight-loss drugs is the delivery method. Shots are not something that most people like to take, let alone give to themselves on a weekly basis. Which is why both Eli Lilly and Novo Nordisk were working on daily pills. Novo Nordisk was, again, first to market with a pill version of Wegovy. The uptake of this version of the drug has been strong, as you might expect.
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Eli Lilly has since introduced its own GLP-1 pill. However, that pill delivers a different GLP-1 drug, known as Foundayo. That means Eli Lilly can’t lean as heavily on its success with Zepbound/Mounjaro when marketing Foundayo. It has to introduce an entirely new drug, which is a much more difficult process. Novo Nordisk is in an advantaged position, for now.
Novo Nordisk leans into convenience
The difference between a shot and a pill is pretty big. While a daily pill may require more frequent dosing, it is likely to be seen as much more convenient than a weekly shot. But Novo Nordisk isn’t done yet. It inked a deal with Vivani Medical to explore an implant that will automatically administer Novo Nordisk’s Wegovy.
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80.65%
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Research on this delivery method is still in its early stages, but it could mean patients only need to manage their GLP-1 drugs once or twice a year. That would take convenience to the next level and could totally change the dynamics of the GLP-1 race. At this point, it doesn’t appear that Eli Lilly is working on anything similar.
It is too early to suggest that Novo Nordisk has found the tool it needs to regain the GLP-1 lead. But in the highly innovative pharmaceutical sector, it is clearly working hard to differentiate its weight-loss offerings. The more choices patients have with Wegovy, the more ways Novo Nordisk has to catch up to Eli Lilly.
Eli Lilly isn’t sitting still; it’s moving in a different direction
For its part, Eli Lilly has been using its GLP-1 success to expand its business into new treatment areas. That may sound like a mistake as Novo Nordisk leans into the hot GLP-1 niche, but it really isn’t. In the second quarter of 2026, GLP-1 drugs accounted for roughly two-thirds of Eli Lilly’s revenue. From a strategic standpoint, focusing on diversification is a good plan.
Still, Novo Nordisk’s continued innovation in the GLP-1 space could give it a chance to regain the lead. And that’s something that investors shouldn’t ignore, noting that Eli Lilly’s price-to-earnings ratio is 40x compared to Novo Nordisk’s 11.5x. The underdog here looks relatively cheap, but it also isn’t out of the fight yet.
