Novo Nordisk's Lead Fades, Eli Lilly Holds Course For Outsized Gains, Says Analyst

On Thursday, Eli Lilly and Co. (NYSE:LLY) said it will sharply increase the list price of its weight-loss and type 2 diabetes drug Mounjaro (tirzepatide) in the United Kingdom.

The moves underscore growing competition with Danish rival Novo Nordisk A/S (NYSE:NVO) in the lucrative obesity drug market.

Starting in September, Lilly will raise the U.K. list price for Mounjaro’s highest monthly dose from 122 pounds to 330 pounds, a 170% jump, bringing it in line with prices in other European markets.

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On Friday, Bank of America Securities (BofA) said Eli Lilly plans to significantly increase GLP-1 drug prices in the U.K., effectively doubling them, although it remains unclear which customers would be affected.

The brokerage added that similar price adjustments are expected in other European markets. In most of these countries, it noted, GLP-1 manufacturers do not have formal pricing agreements with governments, leaving patients to cover the cost out of ...