Pharma Giants Eli Lilly, Novo Nordisk, and Merck: Who's Winning the GLP-1 War?
The pharmaceutical industry is abuzz with Eli Lilly (LLY), Novo Nordisk (NVO), and Merck (MRK) at the forefront. LLY's recent Q2 performance was impressive, with $14.9 billion in combined Mounjaro and Zepbound revenue, non-GAAP EPS of $8.38, and total revenue growth of 48%. Management raised 2026 guidance to $85 to $87 billion in revenue and $35.50 to $36.50 in EPS.
LLY's oral GLP-1, Foundeo, has gained significant traction with 36,000 prescribers, while Retratrutide's TRIUMPH readouts set up a Q1 2027 BLA that CEO Dave Ricks believes gives LLY 'a pretty large lead over any competitors with a triple acting medicine.'
Novo Nordisk (NVO), on the other hand, is facing challenges. Its Q2 results showed adjusted sales of DKK 78.5 billion and CER operating profit growth of 11%. However, Wegovy pill has faced price cuts of roughly 50% and Ozempic list prices have decreased by 35%, effective January 1, 2027.
Merck (MRK) has seen a significant rally, with its YTD gain at 31.09%. Its KEYTRUDA franchise sales grew 4% in Q2, and CEO Rob Davis believes the loss of exclusivity is 'more of a hill than a cliff.'