Novo Nordisk (NVO) Stock: Novo Goes to Court to Silence Lilly’s Weight-Loss Ads

TLDR

• Novo Nordisk filed a motion for a preliminary injunction to immediately halt Eli Lilly’s obesity and diabetes drug ads in the U.S.
• Novo claims Lilly’s ads for Zepbound and Mounjaro used misleading dose comparisons against Wegovy and Ozempic.
• The lawsuit alleges Lilly omitted newer, higher-dose versions of Novo’s drugs that deliver greater weight loss.
• Novo is seeking a permanent injunction and corrective advertising from Lilly.
• Lilly has denied wrongdoing and says it will vigorously defend itself.

Novo Nordisk filed a motion Friday for a preliminary injunction in the U.S. District Court for the District of New Jersey, asking a judge to immediately stop Eli Lilly from running its current obesity and diabetes drug advertising campaigns.

NVO stock was down 0.02% on the day, while LLY gained 1.97%.

Novo Nordisk A/S, NVO

The move is the latest step in a legal battle Novo kicked off on Tuesday when it filed a lawsuit against Lilly.

Novo had warned at the time that it would seek an emergency court order if Lilly did not voluntarily pull the disputed ads. Lilly did not.

The ads in question promote Lilly’s obesity drug Zepbound and diabetes treatment Mounjaro.

Novo argues Lilly’s campaigns compare the highest approved doses of Zepbound and Mounjaro against lower doses of Wegovy and Ozempic — without disclosing that Novo offers newer, higher-dose versions of those drugs.

Novo says those newer versions deliver greater weight loss results, making the comparisons in Lilly’s ads misleading to consumers.

The Danish drugmaker is alleging violations of false advertising and unfair competition laws.

What Novo Is Asking the Court to Do

Novo wants the court to do two things: temporarily halt the ads while the lawsuit works through the legal process, and ultimately force Lilly to permanently withdraw the campaigns and run corrective advertising.

A preliminary injunction, if granted, would stop the ads before the full case is decided — a relatively high legal bar to clear.

Lilly’s Response

Lilly denied any wrongdoing when the lawsuit was first filed Tuesday. The company said it stood by its advertising and would vigorously defend itself.

Lilly had not responded to a request for comment by the time of publication Friday.

The two companies are fighting for position in a GLP-1 drug market that analysts project could exceed $100 billion in the U.S. alone by the end of the decade.

Novo’s lawsuit is now in the District of New Jersey, with the preliminary injunction motion the next key procedural step.

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