Diabetes Drug Makers See Blockbuster Potential with New Weight Loss Drugs Despite Supply Shortages

Novo Nordisk and Eli Lilly reported huge sales growth from new diabetes and weight-loss drugs like Ozempic, Wegovy and Mounjaro.

Demand has exceeded supply for these drugs. Novo still can't fully meet demand for Wegovy and is limiting doses.

Lilly has ramped up Mounjaro supply but says it still needs more capacity. The companies are scrambling to expand production.

The drugs were originally for diabetes but are becoming potential blockbusters for weight loss. Patients can lose 15-20% of body weight.

The companies aim to expand use of the drugs for more conditions and face rising competition. But insurers seem onboard with covering weight-loss drugs so far.