Novo Nordisk accuses Eli Lilly of "deceptive" weight-loss drug ads
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The weight-loss drug wars reached a new level of intensity Tuesday as Novo Nordisk sued Eli Lilly, accusing its arch-rival of misleading advertising.
Why it matters: Lilly and Novo are the market leaders in GLP-1 drug sales, controlling the lion's share of the surging segment.
Zoom in: Novo — the maker of Ozempic and Wegovy — alleged Tuesday that Lilly has engaged in "a nationwide pattern of deceptive advertising which confuses consumers by using outdated studies" in its ads.
- The Danish drug giant said Lilly's ads compare the results from high-dosage GLP-1 treatments to lower dosages of Novo drugs that treat obesity and diabetes, with the dosage difference disclosed only in fine-print disclaimers.
- "People deserve evidence-based, up-to-date information they can trust when making decisions about their health," Novo said in a statement. "Novo Nordisk has taken this step because Americans should not be denied the full picture of their treatment options."
A Lilly spokesperson said the company — which makes Zepbound and Mounjaro — stands behind its advertising, and will "defend against this lawsuit vigorously."
- It says the study referenced in the advertisements "remains the only head-to-head, randomized clinical trial directly comparing tirzepatide and semaglutide in weight management."
State of play: The federal lawsuit comes amid a backdrop of growing scrutiny in Washington over drug advertising.
- Health and Human Services Secretary Robert F. Kennedy Jr. last year announced an FDA "crackdown" on drug ads.
- Sen. Josh Hawley (R-Mo.) and Sen. Jeanne Shaheen (D-NH) recently introduced a bipartisan bill to kill federal subsidies for pharmaceutical ads.
- Sen. Bernie Sanders (I-Vt.) and Sen. Angus King (I-Maine) recently introduced a bill to ban drug ads altogether.
Zoom out: The Novo suit also comes as the GLP-1 competition grows increasingly competitive with the release of oral versions of the injectable drugs, which are already proving to be popular among the public.
- But if Lilly investors were concerned about the conflict, it didn't show in the stock market Tuesday. Lilly shares closed up 2.5% on the day, while Novo shares finished down 0.5% in New York.
The bottom line: Novo wants a permanent injunction requiring Lilly to cease the ads on all platforms and to "conduct a corrective advertising campaign."
Editor's note: This story was updated with a statement from Eli Lilly.
