Eli Lilly to Launch Zepbound Advertising Campaign Amidst Growing Market Share
Key Insights
Eli Lilly plans to begin advertising its weight-loss drug Zepbound next month to increase brand awareness, as current unaided awareness is low.
Zepbound sales reached $3.2 billion since its FDA approval in November 2023, despite no advertising and initial supply constraints.
Lilly is gaining market share from Novo Nordisk in both the weight-loss and diabetes (search) sectors, with Zepbound outpacing Wegovy in prescription growth.
Eli Lilly is set to launch its first advertising campaign for Zepbound, the company's blockbuster weight-loss drug, next month. This decision comes as Lilly seeks to increase public awareness of the drug, despite its impressive $3.2 billion in sales since its FDA approval in November 2023. The move aims to capitalize on growing market share and address the currently low unaided awareness of Zepbound among potential patients.
Addressing Awareness and Supply
According to Eli Lilly CEO David Ricks, the primary motivation behind the advertising campaign is to introduce the Zepbound brand to a wider audience. "We launched this drug almost a year ago and have done no advertising. So I think it is time to introduce the brand so people are aware of that when speaking to their doctor," Ricks stated. This initiative follows the resolution of supply constraints that had previously limited the drug's availability.
Lilly's CFO, Lucas Montarce, expressed confidence in the company's ability to meet future demand, noting that Zepbound has only penetrated 5% of its total addressable market. The company plans to leverage its direct-to-consumer platform, LillyDirect, to further enhance patient awareness and access.
Market Share Gains
Eli Lilly is increasingly challenging Novo Nordisk in both the weight-loss and diabetes (search) markets. "If we look at the last 90 days [and] 180 days of US prescription growth, both brands are growing aggressively. We've now passed Wegovy in the weight-loss sector," Ricks told Yahoo Finance. In the diabetes space, Mounjaro is steadily gaining ground on Ozempic, capturing increasing market share.
Recent data indicates a significant shift in market dynamics. In weekly prescription data ending October 18, Eli Lilly's Mounjaro held 33% of the market share, a 79% year-over-year increase, while Novo's Ozempic held 47%, a 39% year-over-year increase. Furthermore, Zepbound's prescriptions have outpaced Ozempic, Mounjaro, and Wegovy within the first 12 weeks of launch, although supply constraints had temporarily slowed its growth.
Zepbound's Performance
While specific market share data for Zepbound and Wegovy is not available, quarterly average prescription data reveals a substantial increase in Wegovy prescriptions by 123% year-over-year in October, compared to a 3,281% increase for Zepbound. This rapid growth underscores Zepbound's potential in the competitive weight-loss market.
As Eli Lilly ramps up its advertising efforts, the company aims to solidify its position and further expand the reach of Zepbound, providing a valuable option for individuals seeking effective weight management solutions.