Eli Lilly and Novo-Nordisk A/S are intensifying their rivalry as Foundayo, Eli Lilly's oral weight-loss drug, secures its first European approval in the UK, setting the stage for a direct market clash. This marks the second GLP-1 oral treatment approved in Europe, coming just two months after Novo-Nordisk A/S launched oral Wegovy on the continent. The UK's Medicines and Healthcare products Regulatory Agency announced on Monday that orforglipron, marketed as Foundayo, was authorized for prescription use in weight management and type 2 diabetes treatment.

Like all new medications, Foundayo must undergo a cost-effectiveness review by the UK's National Institute for Health and Care Excellence (NICE) before it can be provided to the public under the National Health Service (NHS). Initially, the drug will only be available for private purchase with a prescription. Novo-Nordisk A/S has leveraged its several-month lead in the oral weight-loss market to position oral Wegovy as the most effective oral option available. Eli Lilly is highlighting Foundayo's key advantage: as a small-molecule drug, it has no dietary restrictions, whereas oral Wegovy must be taken on an empty stomach in the morning, with no food or drink for at least 30 minutes afterward.

In the U.S. market, Foundayo's market penetration has been notably slower than oral Wegovy. Eli Lilly CEO David Ricks stated in an April interview that this is because Foundayo is a completely new drug, requiring time to gain acceptance from doctors and patients. In contrast, oral Wegovy shares the same active ingredient, semaglutide, as its injectable formulation. Foundayo launched in the U.S. in April and generated $98 million in sales in the second quarter. Both companies report that oral weight-loss drugs are creating an incremental market, with buyers not limited to those who previously used higher-priced injectables.

Novo-Nordisk A/S CEO Mike Doustdar said in a recent interview that he foresees the future weight-loss market shifting significantly toward oral formulations, while emphasizing that oral Wegovy is still in its early market stages. He dismissed analyst concerns about oral Wegovy's second-quarter sales falling slightly below expectations and momentum slowing. Doustdar also revealed that an estimated 300,000 patients began using oral Wegovy in the UK within its first three weeks on the market.