Lilly's weight-loss pill wins US approval

A sign for Eli Lilly & Co. sits outside their corporate headquarters in Indianapolis on Apr. 26, 2017. AP-Yonhap

The U.S. Food and Drug Administration on Wednesday approved Eli Lilly's weight-loss pill, making it the second to market after Novo Nordisk's oral Wegovy, as the companies fight to capture more customers with the convenience of pills over injectables.

The Lilly drug, orforglipron, which will be sold under the brand name Foundayo, is a once-daily oral medication designed to mimic the appetite-suppressing GLP-1 hormone targeted by the company's blockbuster injection tirzepatide, sold as Mounjaro for diabetes and Zepbound for weight loss.

Lilly said the drug will be available for shipping beginning April 6 through its LillyDirect program and cost $149 per month for the lowest dose for self-pay customers, on par with Novo's pill. Soon after, it will be available through retail pharmacies and telehealth providers, the Indianapolis-based company said.

The approval gives Lilly solid footing in the emerging obesity-pill market after overtaking Novo Nordisk in the injectable weight-loss market. The Danish drugmaker was first-to-market with GLP-1 medicines Ozempic for diabetes and Wegovy for obesity, but has fallen behind amid intense competition from Lilly and pressure from compounded versions of the medicines.

Lilly's pill has a convenience advantage over Novo's: it can be taken without any restrictions and at any time of day, compared with the Wegovy pill, which must be taken first thing in the morning and 30 minutes before any food, water or other medications. Shares of Lilly climbed 4 percent, while U.S.-listed shares of Novo fell nearly 2 percent after the announcement.

Oral weight-loss drugs are not expected to fully replace injectables, but analysts estimate pills could capture around 20 percent of the market by 2030, particularly among patients who prefer pills to injections.