Novo Nordisk (NOVO_B) filed a lawsuit accusing Eli Lilly NYSE:LLY of running a "deliberately false" advertising campaign about the comparative effectiveness of their competing obesity and diabetes drugs. Novo Nordisk alleges Lilly cited outdated clinical trial data to claim its obesity drug Zepbound delivered greater average weight loss than Novo's Wegovy, and that its diabetes drug Mounjaro lowered blood sugar more effectively than Ozempic. Novo shares fell 1.45% on the Nasdaq Copenhagen exchange while Lilly shares were down 0.58% premarket.
Novo is seeking a permanent injunction to stop the ads, a public correction, and damages equal to any profits Lilly earned from the campaign. General counsel John Kuckelman said that Novo sent a cease-and-desist letter in April and received no response, after which Lilly added a small disclaimer noting that the 7.2mg Wegovy dose approved in March wasn't included in the trials underpinning its comparison. "You cannot use a misleading disclaimer to fix a misleading advertisement," he said.
Both companies are rolling out oral weight-loss pills that could widen the market considerably, and Novo's Wegovy pill reached US patients in January, ahead of Lilly's April launch. Lilly has yet to file a defense.