Novo Nordisk sues Eli Lilly: GLP-1 advertisement accused of "bullying," is the weight-loss drug market changing?

The global GLP-1 weight loss drug market competition is escalating further.

On July 21, it was reported that Novo Nordisk has taken Eli Lilly to court in the United States, accusing it of misleading patients through "high dose vs. low dose" comparisons in consumer-targeted advertisements and engaging in unfair competition during a critical market rivalry period.

As both companies launch their oral GLP-1 products, the competition for this multi-billion dollar market is expanding from products and production capacity to brand marketing and legal aspects. For Novo Nordisk, which is facing pressure on market share, this lawsuit also reflects a more proactive competitive strategy by the new management.

On Tuesday, Novo Nordisk’s stock fell about 1% on the Copenhagen exchange, while Eli Lilly’s U.S. stock rose about 1%.

Novo Nordisk: Eli Lilly's advertisement contains misleading comparisons

Novo Nordisk has filed a lawsuit in the federal district court of New Jersey, accusing Eli Lilly of violating advertising laws and unfair competition laws.

According to the complaint, Novo Nordisk is particularly challenging an advertisement named “Watch This: Head-to-Head,” which has been running since February this year. The company points out that the advertisement compares GLP-1 drug efficacy by deliberately contrasting the high dose of Eli Lilly's product with the low dose of Novo Nordisk’s product and omits the latest clinical research data, thereby sending misleading conclusions to consumers.

The complaint states that this is not an isolated advertising occurrence but part of a long-term comparative marketing strategy used by Eli Lilly across various disease areas.

Novo Nordisk says that as the GLP-1 market enters a crucial phase, such advertisements may have a greater impact on consumer perception and market competition, thus causing more serious damage to the company’s commercial interests. As of now, Eli Lilly has not publicly responded to the lawsuit.

Novo Nordisk’s competitive strategy shifts markedly after new CEO takes office

This litigation is one of the series of aggressive competitive actions taken by Novo Nordisk after its new CEO, Maziar Mike Doustdar, took office.

Since Doustdar assumed leadership of the company, Novo Nordisk has significantly intensified its use of legal means to protect its market position and has previously sued several companies, including Hims.

The report cites market sources saying that with GLP-1 competition heating up and Eli Lilly steadily expanding its market share, Novo Nordisk is trying to broaden the scope of competition from the products themselves to marketing compliance, brand image, and channel management to alleviate competitive pressure.

GLP-1 competition enters “all-out war”

In recent years, GLP-1 drugs have quickly become one of the fastest-growing tracks in global pharmaceuticals, with millions of American patients having used or tried Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound products.

This year, with Novo Nordisk launching oral Wegovy tablets and Eli Lilly rolling out Foundayo, GLP-1 market competition is extending from injections to oral formulations, offering richer product forms and intensifying the battle for patient, doctor, and consumer awareness.

Novo Nordisk emphasized in the complaint that the GLP-1 market is currently at a “tipping point,” so Eli Lilly’s allegedly misleading advertising behavior has had an especially serious impact on Novo Nordisk’s brand image and business interests. The competition between these two global weight loss drug giants is escalating from product development and capacity expansion to a comprehensive showdown in legal and marketing arenas.

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