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Novo Nordisk Sues Eli Lilly Over Alleged 'Misleading' Ad Campaigns

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Novo Nordisk Sues Eli Lilly Over Alleged 'Misleading' Ad Campaigns

Novo Nordisk (NVO) on Tuesday sued rival Eli Lilly (LLY) in the US over alleged "misleading" advertising campaigns for its obesity and diabetes drugs that compete with the Danish pharmaceutical giant's products.

The lawsuit, filed in the US District Court for the District of New Jersey, accused Lilly of being in "multiple violations of federal and state false advertising and unfair competition laws," Novo said in a statement.

Lilly's ad campaigns in the US for its weight-loss drug Zepbound and Mounjaro diabetes treatment are based on what Novo described as "outdated studies" comparing highest doses of Lilly's drugs versus lower doses of Novo's Wegovy and Ozempic brands.

"These high-profile US advertising campaigns create the misleading impression that Lilly's medicines are superior, including by withholding critical scientific evidence about newer, more effective (US Food and Drug Administration-approved) options," Novo said.

The Danish drugmaker is seeking a permanent injunction to stop the advertising across all platforms and require Lilly to run corrective ads.

"We have also communicated to Lilly that if they do not voluntarily pull these ads, Novo Nordisk intends to file a formal motion with the court in the coming days seeking a preliminary injunction to immediately block them, with evidence that consumers are being confused and misled by Lilly's ads," Novo said.

Lilly disputed the allegations and said it intends to fight the lawsuit.

"The gold standard for comparing medicines is a robustly designed, well-conducted head-to-head clinical trial -- like SURMOUNT-5, which remains the only head-to-head, randomized clinical trial directly comparing tirzepatide and semaglutide in weight management," a Lilly spokesperson said in a statement e-mailed to.

"Rather than compete on the merits of its products, Novo is asking a court to stop Lilly from communicating the results of that trial," the spokesperson said. "We stand firmly behind our advertising."

Lilly shares were up 1.4% in Tuesday afternoon trade, while Novo's New York Stock Exchange-traded American depositary receipts were down 0.4%.

Price: $49.41, Change: $-0.20, Percent Change: -0.40%

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