Eli Lilly and Novo Nordisk, two pharmaceutical giants dominating the global obesity treatment market, are taking divergent paths in their long-term strategies.

Lilly is pursuing an ambitious expansion beyond obesity and diabetes into neurology and immunology, while Novo is doubling down on its core disease areas, strengthening its market position through focused indication enhancements.

Industry sources reported on Thursday that Lilly announced on January 7 plans to acquire Ventyx Biosciences, a developer of treatments for inflammatory diseases, for $1.2 billion, just before the JP Morgan Healthcare Conference.

Ventyx is developing treatments for immune and neurological disorders based on NLRP3 inhibitors, with several pipeline candidates in Phase 2 clinical trials for Parkinson's disease, pericarditis, and metabolic conditions.

This acquisition marks Lilly's significant push into neurology and immunology. The company is also ramping up its AI-driven drug discovery efforts, partnering with NVIDIA to develop a generative AI platform for identifying new drug candidates, backed by a $1 billion investment over five years.

Lilly's product strategy focuses on diversifying the market with various GLP-1-based treatments. Its oral GLP-1 therapy, Opoglifron, is expected to complement the injectable Mounjaro and is slated for potential approval in the second quarter of this year.

In contrast, Novo Nordisk is maintaining its focus on diabetes and obesity treatments, gradually expanding indications within these core areas.

Novo's acquisition of Akero Therapeutics, a developer of treatments for non-alcoholic steatohepatitis (NASH), aims to complement semaglutide's indications. With an estimated 80% of obesity patients also suffering from fatty liver disease, this move positions Novo for significant indication expansion.

The company is also bolstering its existing product line. A high-dose version of Wegovy (7.2 mg) recently gained approval in the UK, with regulatory reviews ongoing in the U.S. and Europe. Oral Wegovy hit the U.S. market earlier this month.

Novo's pipeline includes Cagrisema, a once-weekly combination drug that was recently submitted for FDA approval. Another promising candidate, Amicretin, is progressing through early-stage development with plans for late-stage trials.

Unlike Lilly's expansive approach, Novo favors selective M&A that closely aligns with its existing pipeline, prioritizing rapid commercialization and financial efficiency in the near term.

Eli Lilly and Novo Nordisk, two pharmaceutical giants dominating the global obesity treatm …

Eli Lilly vs. Novo Nordisk: A $1.2 Billion Bet Reveals Two Very Different Futures for Obesity Drugs