Danish pharmaceutical company Novo Nordisk announced on September 14 that it will rebrand as Novo in daily operations, a move aimed at strengthening its position in the competitive obesity drug market. The company, known for its blockbuster weight-loss treatments Wegovy and Ozempic, also introduced a new corporate culture framework under the slogan 'Lasting Health Starts Now'.
Lilly captures over 30% of new U.S. oral weight-loss drug patients
On the same day, Eli Lilly reported that its oral obesity treatment Foundayo has captured more than 30% of new U.S. patients for oral weight-loss drugs, narrowing the early lead held by Novo Nordisk’s Wegovy pill. Novo Nordisk had previously estimated Wegovy accounted for about 90% of the oral obesity market in August, though Lilly’s data suggests growing competition.
The rivalry between the two companies is intensifying as the obesity treatment market expands. Analysts project the U.S. market alone could exceed $100 billion annually by 2030, with oral drugs expected to comprise over a third of GLP-1 weight-loss treatments by that time.
Novo’s strategic shift amid market pressure
Novo Nordisk’s rebranding includes a refreshed visual identity, retaining its historic Apis bull logo but adjusting its orientation. The company also outlined four new cultural principles—customer obsession, competitiveness, clarity, and care and integrity—to guide its operations in an increasingly consumer-driven market.
The changes come as Novo Nordisk faces declining market share and investor scrutiny. According to IQVIA data cited in a Lilly earnings presentation, Novo Nordisk held 38.8% of the obesity drug market in the second quarter, compared to Lilly’s 60.9%. Novo Nordisk’s shares have dropped about 15% in 2024, despite the successful launch of Wegovy’s oral version, which surpassed 3 million prescriptions as of June.
Competition intensifies globally
Lilly’s injectable treatment Zepbound has also gained traction in the U.S. government’s Medicare obesity drug pilot, launched in July, where 60% to 70% of enrolled patients are new to weight-loss treatments. Meanwhile, Novo Nordisk faces competition from generic versions of its drugs in markets like India and Canada, where prices are up to 70% lower.
Novo Nordisk executives have framed the rebranding as part of a broader effort to enhance relevance and trust with patients and stakeholders. The company plans to detail its updated business strategy during a Capital Markets Day event on September 21.
Market dynamics and future outlook
The obesity drug market remains highly competitive, with both companies expanding their portfolios. Novo Nordisk’s oral Wegovy was approved in Europe earlier this year, while Lilly continues to dominate in injectable treatments like Zepbound and Mounjaro.
Analysts note that the shift toward oral medications could broaden market access by appealing to patients who prefer pills over injections. However, supply challenges and pricing pressures persist, particularly in international markets where generics are emerging.
The companies’ contrasting strategies—Novo Nordisk’s rebranding and cultural overhaul versus Lilly’s aggressive market capture—highlight the evolving dynamics of a sector poised for significant growth.