Eli Lilly’s obesity and diabetes treatments fuel growth and spark bidding war

The market for obesity and diabetes treatments is booming, generating significant revenue for companies like Eli Lilly. Eli Lilly's Mounjaro and Zepbound alone brought in over $10 billion in the latest quarter, driving the company's overall sales. Danish drugmaker Novo Nordisk is set to acquire Metsera Inc. in a deal potentially worth billions, showing continued investment in the sector. This comes after Pfizer's prior bid for Metsera, which is developing potential treatments. GLP-1 receptor agonists are driving both sales and deal interest by regulating appetite, but they have drawbacks. While supplies have improved, access to these drugs remains limited due to high costs, although insurance coverage is expanding. Both Novo and Lilly are developing oral versions of these treatments to improve accessibility. Lilly's weight-loss drug Zepbound and diabetes drug Mounjaro have seen massive sales growth this year, nearly reaching $25 billion year-to-date. This strong performance led to significant profits for Eli Lilly in the third quarter. Novo Nordisk's offer for Metsera was deemed superior, prompting Pfizer to consider adjustments to its initial bid. Pfizer has accused Novo Nordisk of attempting to stifle market competition.