Novo Nordisk, a Danish pharmaceutical company, is gaining ground in the obesity drug market with its new weight-loss pill, Wegovy. The company’s shares have climbed 35% from a March low, and it is looking to go on the offensive against rival Eli Lilly.

Obesity Drug Market Competition

The obesity drug market is expected to be worth over $100 billion by the end of the decade in the United States alone. Novo Nordisk and Eli Lilly are battling for dominance in this market, with Novo’s Wegovy holding its lead against Lilly’s Foundayo.

Analysts and shareholders will be looking for clues from Novo’s management that the company’s turnaround is durable when it reports its second-quarter results on August 5. The company is also involved in a court case against Lilly over what it calls misleading marketing in the US market.

Market Outlook

Novo’s ability to broaden its product line beyond obesity and diabetes is under scrutiny after a recent heart disease drug trial fail. However, the company is being more aggressive and trying to make some noise in the market, even if the lawsuit is unlikely to make a huge difference.

Analysts expect Novo to edge up its full-year outlook, and the company’s shares are expected to continue to climb. The obesity drug market is highly competitive, but Novo Nordisk is well-positioned to compete with Eli Lilly and other rivals.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.