Competition between two pharmaceutical giants has intensified, with Novo-Nordisk A/S (NVO.US) filing a lawsuit in a U.S. federal court against Eli Lilly (LLY.US). The lawsuit alleges that advertisements for Lilly's blockbuster weight-loss drug Zepbound and diabetes injection Mounjaro are deceptive.
The legal action centers on a campaign launched by Lilly in April. Novo Nordisk's Chief Legal Officer, John Kuker, stated in an interview that the ad references head-to-head study results, claiming patients using Zepbound lost an average of 50 pounds, compared to an average loss of 33 pounds for those using Wegovy.
According to a copy of the court filing provided by the Danish company, Novo Nordisk argues that Lilly's advertising relies on outdated weight-loss comparison data. Specifically, it compares Zepbound to a lower dose of Novo Nordisk's Wegovy than is currently available on the market. While Lilly's Zepbound did outperform Wegovy in a head-to-head clinical trial last year, Novo Nordisk subsequently gained approval to market a higher dose of its drug than was used in that study.
Novo Nordisk contends that a more appropriate comparison would reference two separate studies. One study shows that a higher dose of Novo Nordisk's Wegovy helped patients lose an average of 47 pounds. Another study indicates that Zepbound helped patients lose an average of 48 pounds.
The Danish firm also alleges that Lilly's advertisements for its diabetes drug Mounjaro contain misinformation. That ad, based on a comparison with a lower dose of Ozempic, tells consumers that Lilly's drug is superior to Novo Nordisk's Ozempic for lowering blood sugar, despite current market doses of Ozempic being different.
Kuker stated that Novo Nordisk is asking the court to order Lilly to immediately stop running the ads and to issue "corrective advertising." He remarked, "They have put misinformation into the marketplace and now they need to clean it up."
Kuker noted that this lawsuit follows a cease-and-desist letter sent by Novo Nordisk to Lilly in April. He said Lilly did not respond but instead added a disclaimer to its ads stating that the higher dose used in the study was not available at the time.
The complaint was filed in the U.S. District Court for the District of New Jersey. It accuses Lilly of violating federal and state laws regarding false advertising and unfair competition under the Lanham Act. Kuker added that the company may also seek further remedies through the U.S. Food and Drug Administration (FDA).
Industry research forecasts that the global obesity drug market could reach an annual value of $120 billion by 2030. The two drugmakers are currently locked in a fierce battle for this substantial market. While Novo Nordisk was first to market with Wegovy, U.S.-based Lilly caught up and took a lead with Zepbound, which currently holds a sales advantage.
Novo Nordisk has been accelerating efforts to regain market share. These efforts include partnerships with telemedicine companies and the launch of a new weight-loss pill that has seen widespread patient acceptance and faces extremely high demand.
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