In a significant shift in the pharmaceutical landscape, Eli Lilly has surpassed Merck to claim the title of manufacturer of the world’s best-selling drug. Lilly’s tirzepatide, known as Mounjaro for type 2 diabetes and Zepbound for obesity, generated an impressive $10.1 billion in sales during the third quarter of the year, outpacing Merck’s Keytruda, which reported sales of $8.1 billion.
Tirzepatide’s rise to the top has been remarkably swift; it received approval for diabetes in 2022 and for obesity in 2023. In contrast, Keytruda took nine years to secure its position as the best-selling drug after its initial approval. This rapid ascent highlights the growing demand for GLP-1 receptor agonists, which have been at the forefront of a competitive market focusing on obesity and diabetes treatments.
Lilly is now regarded as a leader among pharmaceutical companies in addressing these conditions, overtaking Novo Nordisk, which was the first to deliver effective treatments like Ozempic and Wegovy. Experts believe that Lilly’s tirzepatide has the potential to achieve even greater weight loss than its predecessors.
The competitive dynamics within the obesity drug market were underscored recently by Novo Nordisk’s announcement of a takeover bid for biotech company Metsera. This move comes just a month after Metsera had indicated it would enter into an acquisition deal with Pfizer, further illustrating the fierce competition among major players in the industry.
On the earnings front, Lilly reported total revenue of $17.6 billion in the third quarter, surpassing analysts’ expectations, which had predicted revenues of $16.1 billion. In light of this strong performance, the company has increased its full-year sales guidance to a range of $63 billion to $63.5 billion, up from a previous estimate of $60 billion to $62 billion. Additionally, Lilly revised its guidance for adjusted earnings per share, now projecting a range of $23.00 to $23.70, compared to its earlier estimate of $21.75 to $23.00.
