Novo Nordisk Takes Legal Fight to Eli Lilly Over GLP-1 Advertising Claims
Published on 07/25/2026 at 08:41 | Redaktion boerse-global.de
Novo Nordisk is escalating its battle for dominance in the weight-loss drug market, filing a motion for a preliminary injunction that could force rival Eli Lilly to pull television ads for Zepbound and Mounjaro. The Danish pharmaceutical giant lodged the request with a federal court in New Jersey on July 21, with a hearing now scheduled for August 17. At the heart of the dispute is a claim that Lilly’s marketing relies on outdated clinical data, comparing its highest tested doses against lower doses of Novo’s Wegovy and Ozempic while ignoring newer, more potent formulations.
The legal offensive targets a specific Lilly television spot that has generated more than 700 million impressions since April. In the ad, Lilly asserts that patients on Zepbound lost an average of 50 pounds, compared with 33 pounds for those taking Wegovy. Novo counters that a 7.2-milligram dose of Wegovy, approved in March, delivers 47 pounds of weight loss in more recent analyses, and that a 2-milligram dose of Ozempic has also been omitted from the comparison. Novo is seeking not only an injunction but also a permanent halt to the campaign, corrective advertising, and damages under the Lanham Act. Lilly has rejected the allegations, stating that its ads are based on the only direct head-to-head studies of the two drug classes.
The courtroom clash comes at a pivotal moment for both companies as they jostle for position in a U.S. obesity market projected to exceed $100 billion by the end of the decade. Prescription data from the week ending Friday shows Wegovy tablets reaching roughly 169,800 weekly scripts, a 10% jump from the prior week. Lilly’s Zepbound, meanwhile, posted nearly 710,000 prescriptions, up 8%, giving it a commanding 58.9% market share. Novo’s oral Wegovy has accumulated 3 million total prescriptions in just five months, with more than 80% of new patients coming from those who had never used a GLP-1 drug before.
Should investors sell immediately? Or is it worth buying Novo Nordisk?
Analysts are split on whether the legal strategy will pay off. Evan Seigerman of BMO views the move as evidence of a more aggressive posture from Novo Nordisk, one that could help defend its franchise. Sven Borho of Orbimed, however, warns that the company would be better served focusing on its own pipeline rather than tying up resources in litigation. The disagreement underscores the uncertainty surrounding the outcome: a win in court could stall Lilly’s momentum, while a loss might embolden the U.S. rival and expose Novo to further market-share erosion.
Beyond the courtroom, Novo faces additional headwinds. Australia’s Therapeutic Goods Administration updated its class-wide safety warnings on July 23 regarding a rare eye condition known as NAION, with 36 cases linked to GLP-1 drugs in the national adverse-event database. Twenty-three of those cases involved semaglutide, the active ingredient in Novo’s core products. If other regulators follow suit, the heightened scrutiny could weigh on investor sentiment.
The stock has shown tentative signs of stabilization. Shares closed at €42.85 on Friday, up 1.19% on the day, but remain 2.67% lower year-to-date and nearly 30% below the 52-week high of €60.95. The 14-day relative strength index sits at a neutral 54.2, while the price has held above the 100-day moving average of €37.30. Over the past 30 days, the stock has gained 2.66%, suggesting that traders are waiting for clearer signals from both the legal proceedings and the next quarterly report.
Two catalysts now dominate the outlook. The August 17 hearing will determine whether Novo can temporarily block Lilly’s ads, while the upcoming earnings release will test whether demand for the higher-dose Wegovy variants is translating into stronger financial results. A favorable court ruling combined with robust prescription growth could push the stock back toward the 200-day moving average of €40.38. Conversely, a legal setback or supply constraints on the new doses could trigger a retreat toward the losses seen in recent weeks. For now, the market is watching — and waiting.
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