SHERIDAN, WYOMING – August 10, 2025 – Eli Lilly is navigating a three-pronged challenge on drug pricing, from regulatory proposals to competitive market dynamics, even as it advances its next-generation oral weight loss candidate, orforglipron. On its second quarter earnings call, the company’s leadership underscored that pricing strategy will remain central to sustaining market share and delivering shareholder value.
Balancing Innovation and Pricing in Obesity Therapeutics
Lilly’s much-anticipated oral GLP-1 receptor agonist, orforglipron, is positioned to compete directly with Novo Nordisk’s blockbuster obesity portfolio. With the oral format offering improved patient convenience over injectable therapies, analysts expect robust uptake potential. However, the commercial rollout will hinge on a price point that supports payer coverage while defending against Most Favored Nation (MFN) pricing pressures at the federal level.
Market Dynamics Intensify with Novo Nordisk Competition
The global obesity treatment market is rapidly expanding, with GLP-1 therapies driving much of the growth. Novo Nordisk currently dominates, but Lilly’s portfolio—which includes the injectable tirzepatide—has already demonstrated strong market penetration. The addition of an oral option could expand patient reach, but pricing strategy will be critical to counter competitive discounts, formulary negotiations, and emerging biosimilar entrants in the coming years.
Regulatory Pressure from Drug Pricing Reform
The Biden administration’s MFN drug pricing model, if enacted, could tie U.S. prices to lower international reference points. For high-demand therapies such as GLP-1s, the impact could be significant, potentially requiring manufacturers to rebalance margins between domestic and global markets. While some provisions have faced delays, the policy remains a focal point for both investor risk assessments and long-term R&D planning.
CEO Emphasizes Value Proposition
Lilly’s leadership remains committed to defending the value of its therapies in the face of scrutiny. “From the price of forthcoming weight loss pill orforglipron, to Most Favored Nation drug pricing and the market battle with Novo Nordisk, pricing was the number one issue for Eli Lilly on its second quarter earnings call,” the company stated, framing affordability discussions as inseparable from innovation and patient outcomes.
Strategic Implications for Payers and Providers
For payers, the arrival of orforglipron presents both opportunities and challenges—namely, expanding patient access to effective weight management while managing long-term therapy costs. Providers may benefit from increased patient adherence through an oral format, potentially improving clinical outcomes in obesity-related comorbidities such as type 2 diabetes and cardiovascular disease.
Looking Ahead in the GLP-1 Pricing Landscape
Lilly’s pricing strategy over the next 12–18 months will likely set the tone for the competitive equilibrium in the obesity drug market. Key watchpoints include:
- Regulatory updates on MFN implementation timelines.
- Payer formulary decisions and coverage breadth for orforglipron.
- Competitor responses from Novo Nordisk and other GLP-1 developers.
With obesity care now a central growth pillar for multiple top pharma players, pricing decisions made today will shape both market share and patient access for years to come.
Learn more at https://investor.lilly.com