Eli Lilly (NYSE: LLY) and Novo Nordisk (NYSE: NVO) both participate in one of the biggest pharma growth markets today, and that’s the weight loss drug market. These companies are leaders in the space, with Novo entering first and Lilly joining soon afterward.
Lilly makes tirzepatide, sold as Mounjaro for type 2 diabetes and Zepbound for weight loss; Novo makes semaglutide under the names Ozempic for the former and Wegovy for the latter. These drugs have helped revenue soar in recent years as patients rushed to get in on this safe and effective weight loss opportunity.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
As a result, the companies’ stock prices have also benefited from their work in the GLP-1 space. But one of these players has emerged as the biggest winner, at least so far, and that’s Lilly. In fact, Lilly is now worth almost nine Novo Nordisks in terms of market capitalization. Let’s check out how the gap got so wide.
The key growth driver for Lilly and Novo
Novo and Lilly are major pharma companies offering drugs across treatment areas, so they don’t depend uniquely on weight loss drugs for revenue. But in recent years, this type of product has become the key growth driver. And this is due to the high level of demand for such products, so high that at some points the Novo and Lilly drugs even landed on the U.S. Food and Drug Administration’s shortage list. They’ve since come off the list as both companies have ramped up production.
These treatments, known as GLP-1 drugs, work by targeting hormonal pathways involved in digestion, and this helps control the individual’s blood sugar levels and appetite. Novo won approval of Ozempic back in 2017, and Lilly followed in 2022 with Mounjaro. Doctors often prescribed these drugs off-label for weight loss — until the companies won approval for their products, under the Zepbound and Wegovy brand names, specifically for weight loss, too.
The four drugs are all injectables, and these pharma giants further strengthened their portfolios recently by winning approval of oral weight loss drugs. Novo launched oral Wegovy early this year, and Lilly released Foundayo a few months later.
Lilly takes GLP-1 leadership
Novo, as the earliest to market, originally dominated, but a clear shift began in late 2024, and in early 2025 something big happened: Lilly took the lead in the market and today holds a 63% share in the U.S. Novo holds about a 36% share.
