1. Hengrui Pharma's trial showed significant weight loss linked to GLP-1/GIP drugs. 2. Their drug HRS9531 targets same receptors as Eli Lilly's tirzepatide. 3. Positive results may intensify competition in the weight-loss market. 4. Eli Lilly's tirzepatide has gained strong market momentum and sales. 5. China has over 200 weight-loss pipelines in development by various firms.
The emergence of competitive GLP-1/GIP drugs could pressure LLY’s market share, reminiscent of how newer entrants have historically affected incumbents like Novartis when competing anti-diabetics arrived, creating pricing pressures and market fragmentation.
The article discusses a competitor directly challenging LLY with similar therapies, indicating potential market share loss and pricing pressures that could affect LLY's profitability.
As Hengrui progresses towards global trials, its drug could significantly disrupt the market, affecting LLY's long-term revenue outlook - similar to how the approval of semaglutide impacted LLY’s market positioning.