As prescriptions for weight-loss and diabetes drugs skyrocket, so too has revenue for drugmakers Novo Nordisk and Eli Lilly.
On Thursday, Novo Nordisk, the Denmark-based company behind Ozempic and Wegovy, reported a 29% increase in sales to $8.4 billion for the third quarter. Eli Lilly, which makes diabetes drug Mounjaro, reported a 37% revenue increase to $9.5 billion in the third quarter.
The pharmaceutical companies are two of the biggest beneficiaries of the recent weight-loss drug frenzy, with Novo Nordisk catapulting to Europe’s most valuable company in September.
Both Ozempic and Mounjaro are injectable prescription medicines intended for adults with diabetes, though both are often prescribed off-label for weight loss. Wegovy was approved in 2021 for obesity treatment.
The medicines are so popular in the United States that demand has outpaced both Eli Lilly and Novo Nordisk’s ability to produce the drugs.
The medicines work by reducing patients’ appetites – and they are particularly popular in the United States. Approximately 1.7% of America’s population has been prescribed a semaglutide in 2023, up 40-fold in the past five years. Semaglutides are a class of medication that aids insulin production; the class includes Ozempic and Wegovy. Novo Nordisk reported that its obesity care sales grew 174% in the first nine months of 2023, mainly driven by US demand.
The success of Novo Nordisk and Eli Lilly’s drugs has inspired other companies to dive into the prescription weight-loss business, including WeightWatchers, now known as WW International. In March, the diet company announced it would buy Sequence, a telehealth subscription service that connects patients with doctors who can prescribe weight-loss and diabetes drugs, including Ozempic and Mounjaro.
However, while the injected medicines have proven extremely effective for weight loss, one study suggests that people taking the drugs may be at higher risk for serious digestive problems.
