The obesity drug market is currently dominated by two major players: Eli Lilly and Novo Nordisk. Both companies are working hard to maintain their leadership positions as they compete for market share. Novo Nordisk reported an 18% increase in sales for the first half of the year compared to the same period last year, but the company lowered its revenue and profit expectations for 2025 due to slower-than-expected growth. Meanwhile, Eli Lilly is gaining ground with its popular obesity drug, Zepbound (tirzepatide), which has driven a 38% revenue increase in the second quarter and a 41% rise for the first half of the year. Lilly has also raised its 2025 financial outlook due to strong demand for its GLP-1 drugs. The latest earnings reports from both companies reveal how they are competing as other drugmakers wait for their own treatments to advance in clinical trials. The GLP-1 drug market grew in the second quarter, with Lilly’s total prescriptions increasing by 41% compared to the same period last year (when prescriptions rose by just 13%). Lilly now holds 57% of the market, up from 53% earlier this year, and its tirzepatide drugs account for two-thirds of all patients taking obesity medications. Executives believe there is still significant growth potential since only about 4% of Americans were using GLP-1 drugs for obesity or diabetes last year. Lilly is optimistic about Zepbound becoming the most widely used obesity treatment. While market growth remains strong, Lilly’s CFO, Lucas Montarce, noted that many more patients could benefit from these treatments. Novo Nordisk, on the other hand, reported slower growth for its GLP-1 diabetes drugs but sees opportunities in the expanding obesity market. David Moore, president of Novo Nordisk U.S. operations, emphasized that market expansion for obesity treatments is still a key focus. Both companies are developing oral versions of their GLP-1 drugs, with Novo seeking U.S. approval for its once-daily semaglutide pill later this year. Lilly recently shared results from a phase 3 trial of its oral GLP-1 drug, orforglipron, showing an average weight loss of 12.4% over 72 weeks. While this did not outperform Novo’s Wegovy, Lilly plans to continue developing the pill as a convenient alternative to injections. Novo is also exploring combination therapies to improve results and reduce side effects. Both companies are investing heavily in manufacturing to meet demand. Lilly has expanded production in the U.S., and Novo acquired Catalent to boost its global manufacturing capacity. Governments are also offering incentives to attract these pharmaceutical giants, such as Wisconsin’s $100 million tax credit for Lilly’s facility expansion. With strong demand and ongoing innovation, both companies are poised to shape the future of obesity treatment.