GLP-1 injection scares you? New weight-loss pill is here
What's the story
Eli Lilly has announced that its once-daily GLP-1 pill for obesity has been approved by the US Food and Drug Administration (FDA). The drug, which contains orforglipron as its active ingredient, will be sold under the brand name 'Foundayo.' The company said Foundayo will be available through its online program, LillyDirect, with prescriptions accepted immediately and shipping starting April 6.
Wider availability
Availability through retail pharmacies and telehealth providers
After the initial launch via LillyDirect, Foundayo will also be made available through retail pharmacies and telehealth providers across the US. The move comes as a response to the growing popularity of injectable GLP-1s in recent years. Oral versions like Foundayo are expected to attract needle-adverse patients and serve as maintenance therapies for those who started with weekly injectables.
Market strategy
Stockpiled supply ahead of FDA approval
Ahead of FDA approval, Eli Lilly had prepared a stockpile of Foundayo to meet the anticipated strong demand. The company had initially planned for a second-quarter launch, but the early FDA approval has expedited this timeline. As a result, Lilly shares surged by about 5% on Wednesday afternoon.
Competitive edge
Advantages over Novo Nordisk's oral GLP-1 pill
While Novo Nordisk was the first to launch an oral GLP-1 pill, Foundayo has some unique advantages. It doesn't have any restrictions on food, water or time of day for consumption. This is different from its competitor Wegovy, which has to be taken early in the morning on an empty stomach. Plus, in a head-to-head study with oral Wegovy, Foundayo showed better benefits for diabetes patients including weight loss.
Sales forecast
Projected sales growth for Foundayo
According to FactSet, analysts expect Foundayo to generate approximately $1.55 billion in sales this year. The figure is expected to grow significantly, reaching an estimated $14.8 billion by 2030. Eli Lilly is also seeking FDA approval to market the drug for diabetes treatment, further expanding its potential market reach and revenue generation capabilities.