Novo Nordisk sues Lilly, accuses company of deceptive ads

• Novo Nordisk sued Eli Lilly, alleging its Zepbound and Mounjaro advertisements used misleading comparisons with Wegovy and Ozempic.
• Eli Lilly shares fell 0.5% to $1,141.84 in premarket trading, while Novo Nordisk’s Copenhagen shares declined 1.7%.
• Novo is seeking to stop the advertisements, require corrective advertising and recover damages linked to the campaigns.

Novo Nordisk (NYSE:NVO) sued Eli Lilly (NYSE:LLY) in New Jersey, challenging GLP-1 advertisements served more than 700 million times.

Novo alleges Lilly compared maximum Zepbound and Mounjaro doses with lower Wegovy and Ozempic doses while omitting newer approved strengths.

“Healthcare companies have a responsibility to keep their public claims accurate and current,” said Novo Nordisk Group General Counsel John F. Kuckelman.

Novo seeks injunctions, corrective advertising and damages, including profits linked to the campaigns, while Lilly had not immediately commented on the complaint.

Following the announcement, Eli Lilly share price was down 0.5% at $1,141.84 in premarket trading.

Novo introduced Wegovy before Lilly launched Zepbound, but Zepbound later gained the lead as analysts projected the obesity market above $100 billion by 2030.

Novo has since launched oral Wegovy and secured approval for a 7.2-milligram injection, while Lilly continues promoting Zepbound and Mounjaro nationally.