Obesity drugs fuel revenue growth as it doubles down on US market

Eli Lilly results: Obesity drugs fuel revenue growth as it doubles down on US market

Max Stanyard, healthcare and life sciences senior analyst at RSM UK, comments on Eli Lilly’s full year results: “The significant jump in Eli Lilly’s revenue is driven by growth in sales of its obesity and diabetes medications, which shows no sign of slowing down. The FDA approval of its new oral obesity medication – targeted for April 2026 – combined with broader coverage of existing obesity medications by the US Medicare and Medicaid plans, will propel future growth.

“This coverage expansion means that millions of Americans could receive subsidised access to these medications, however, access in the UK paints a different picture. NHS prescribing remains highly restricted due to cost-effectiveness thresholds and capacity constraints within specialist weight management services. Without broader access, the risk of health inequalities between the UK and the likes of the US increases. Alternative funding and delivery models may be required to overcome these structural NHS constraints.

“Over time, sustained restrictions in access risk undermining public confidence in the NHS’s ability to adopt innovative treatments at pace. It also weakens the UK’s appeal as a market for pharmaceutical investment, particularly where rapid uptake and real-world evidence generation are increasingly valued.

“This is set against Eli Lilly’s latest $3.5bn investment in US manufacturing capacity. While strengthening North American supply, this underscores the absence of comparable domestic UK production capabilities for next-generation obesity therapeutics. This dependency on international supply chains presents potential vulnerabilities for UK patient access, particularly given ongoing global demand pressures.

“The UK must also balance affordability of these drugs for the NHS against innovation incentives. If pricing is too restrictive, the risk is that Eli Lilly, and other big pharma companies, will deprioritise the UK in favour for higher-margin markets. Sustainable pricing agreements are key in order for the UK to truly see the long-term benefits.”