In the last two years Eli Lilly (LLY +0.80%) It has established itself as a leader in the weight loss market. This is thanks to the company’s Terzapatide, a compound sold under the name Zipbound as an anti-obesity drug (and Monjaro in the treatment of diabetes) that became the world’s best-selling drug in 2025. ZipBound could ride the wave of the fast-growing weight-loss market for years, but plenty of other companies are looking to eat Eli Lilly’s lunch here. Over the past three months, several have posted strong Phase 2 or Phase 3 results for candidates that could finally challenge Zipband. Is Eli Lilly’s Biggest Growth Driver in Trouble?
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Meet (some) competitors
Many pharmaceutical and biotech companies, large and small, are looking to enter this field. Considerably less seems likely to seriously challenge Eli Lilly. Let’s consider three that may qualify. First, there is Regeneronwhich has partnered with a China-based pharmaceutical company to develop a GLP-1 drug called olaterepatide. Regeneron has the rights to commercialize olaterepatide in countries outside of China. Recently, the biotech giant announced that in a phase III study conducted in China, patients taking this drug lost up to 19% of their weight after 48 weeks.
There are several things worth noting. First, this was a relatively large late-stage study, although conducted in a country outside the United States. Third, like Zepbound, olatorepatide is a dual GLP-1/GIP agonist, that is, it mimics the action of these two gut hormones instead of just one, which can help improve efficacy.
Regneron is now a real contender in the weight loss race. Then, there is the roachwhich in January posted the results of a robust Phase 2 study for its candidate, CT-388. CT-388 is also a dual GLP-1/GIP agonist. In the study, the drug led to a 22.5% weight loss after 48 weeks compared to placebo. Finally, there is New Nordisk. The Denmark-based pharmaceutical company is also partnering with a Chinese company to develop UBT251, a drug that mimics the actions of GLP-1, GIP, and glucagon—a triple agonist. In a recent Phase 2 study in China, UBT251 posted an average weight loss of up to 19.7% in just 24 weeks.
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((0.80%) $7.80
current price
dollar985.05
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$929B
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Can Eli Lilly keep the crown?
It’s important to note that none of these candidates will hit the US market anytime soon. Novo Nordisk and Roche still need to conduct Phase 3 studies for them, and while Regneron performed well in one original trial, that was in China. This result is unlikely to support approval in the U.S. At best, it will take a few years for anyone to challenge Zip-Band. But will other treatments enter the market soon enough that it can? Novo Nordisk’s CagriSema should be forthcoming, but that won’t pose a significant problem to Eli Lilly.
Novo Nordisk’s own research showed that Zipbound was better than CagriSema. Here’s another important reason Eli Lilly’s leadership is likely to remain: the company has its own candidates who are making steady progress. Eli Lilly’s oral GLP-1, orforglipron, will likely hit shelves in the second quarter. And it could gain market leadership in the oral weight loss space, given its Phase 3 results across diabetes and obesity, as well as the lack of food or beverage restrictions before taking it.
There is also Eli Lilly’s retatretide, a triple agonist that recently showed a mean weight loss of 28.7% in a study. Yes, the weight loss market will be more competitive, but Eli Lilly should be the biggest beneficiary. Over the next five years, investors can expect the pharmaceutical company to continue posting strong financial results, as it has recently. In 2025, Eli Lilly’s revenue rose 45% to $65.2 billion a year, while its dividend income rose 96% to nearly $23 a year.
In addition, Eli Lilly’s lineup and pipeline are quite diverse beyond its core therapeutic areas. Finally, the company is investing heavily in technology, particularly in artificial intelligence, to speed up the drug discovery process, an effort that could pay off big time down the road. Given Eli Lilly’s continued dominance in the weight management market and other business strengths, the stock is still worth investing in.
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