Novo Nordisk pursues preliminary injunction to block Eli Lilly weight-loss drug ads
Main Legal Dispute and Market Impact
By Maggie Fick and Stine Jacobsen
Background of the Lawsuit
COPENHAGEN, July 24 (Reuters) - Novo Nordisk said on Friday it is seeking a preliminary U.S. court injunction to immediately block obesity and diabetes drug advertisements by Eli Lilly.
Denmark's Novo said on Tuesday it had sued Lilly, arguing consumers were being misled about how the companies' products compare, and that it would seek a preliminary injunction if the U.S. group did not voluntarily remove the disputed ads.
Eli Lilly's Response
Lilly on Friday denied any wrongdoing, saying it stood by its advertising and would vigorously defend itself.
Obesity Drug Market Competition
Novo and Lilly are battling for dominance in the obesity drug market, which analysts expect to be worth more than $100 billion by the end of the decade in the United States alone.
Details of the Disputed Advertising
Novo said in a statement on Friday that Lilly's ads were based on "outdated studies", giving a false impression that the U.S. firm's drugs are vastly superior.
"Novo Nordisk is seeking a court order on an expedited basis to ensure people can access the accurate, complete picture of the treatments available to them today," it said.
Allegations of False Advertising
Novo's lawsuit alleges that Lilly violated false advertising and unfair competition laws through its campaigns for obesity drug Zepbound and diabetes treatment Mounjaro.
Comparisons of Drug Dosages
Novo claimed Lilly compared the highest approved doses of Zepbound and Mounjaro with lower doses of Novo's Wegovy and Ozempic while omitting newer, higher-dose versions of Novo's medicines that it says deliver greater weight loss.
"Novo Nordisk has never tested its highest doses of semaglutide against Lilly's tirzepatide medicines in any clinical trial; instead, it is using a lawsuit to advance comparisons it has never put to the test," a Lilly spokesperson told Reuters on Friday.
Potential Outcomes and Industry Reactions
Novo's lawsuit seeks a permanent injunction requiring Lilly to withdraw the campaigns and conduct corrective advertising.
Analyst and Industry Perspectives
BMO analyst Evan Seigerman said the lawsuit was a way for Novo to try to change public perception of how the two companies' drugs perform.
"What it shows from my perspective is that Novo is taking a more aggressive stance in managing its business, they're not just going to let Lilly say whatever they want," Seigerman said.
Sven Borho, managing partner at Orbimed, said Novo should focus on its pipeline, adding that "Lilly has been outcompeting them on the R&D front as well".
"Going to court is not going to help them in their marketing battle," said Borho, whose firm manages the portfolio of Lilly shareholder Worldwide Healthcare Trust, which also owned a short-term position in Novo until May.
(Reporting by Maggie Fick, Michael Erman, Stine Jacobsen and Louise Rasmussen; Additional reporting by Bhanvi Satija; Editing by Essi Lehto, Terje Solsvik and Alexander Smith)
