Eli Lilly vs Novo Nordisk: One Winner in The Weight-Loss Drug Gold Rush

Eli Lilly and Novo Nordisk both released their Q2 2026 results in early August, but the contrasting performances were striking. Lilly reported a robust 48% revenue growth and lifted its guidance, while Novo Nordisk attempted to manage a shrinking U.S. business through price cuts, layoffs, and a new pipeline. Novo's international performance was noteworthy, with China growing by 93% at constant currency and the rest of the world increasing by 136%.

Lilly's GLP-1 medications, particularly Mounjaro and Zepbound, dominated the U.S. obesity market, accounting for around 6 out of every 10 prescriptions. The company is targeting a U.S. biologics license application (BLA) submission for its triple-acting GLP-1 drug, Retatrutide, in Q1 2027. Novo Nordisk's quarter was more challenging, with adjusted gross margins falling to 78.2% from 82.7% a year earlier.

However, the company's weight-loss pill, Wegovy, showed strong performance, reaching over 5 million total prescriptions and capturing nearly 90% of the oral obesity market. Novo is focusing on defense tactics, including a DKK 6.3 billion non-cash impairment, retiring monlunabant, and grappling with the MACE hazard ratio of 0.99 for its new GLP-1 drug, Orforglipron.

The next 12 months will be crucial for both companies, with Lilly's manufacturing progress, Novo's price cuts, and the Medicare GLP-1 Bridge Program impacting their respective strategies.