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StocksMedium•29 June 2026•

1 min read

FDA Agrees to Review Sandoz Generic GLP-1 Drugs, Threatening Lilly's Obesity Franchise

Key Facts

1The U.S. FDA has agreed to review Sandoz's two generic tirzepatide GLP-1s, which if approved would rival Eli Lilly's obesity drugs.

Amid growing demand for affordable obesity treatments, the U.S. FDA has agreed to review Sandoz's abbreviated new drug applications for two generic tirzepatide GLP-1 formulations. If approved, these drugs would compete directly with Eli Lilly's Mounjaro and Zepbound. The decision follows patent challenges by Sandoz targeting Lilly's lucrative obesity franchise.

Market data shows Eli Lilly (LLY) closed at $1,208.12 on June 26, while Sandoz (SDZNY) closed at $88.685. The GLP-1 obesity drug market is worth billions, and analysts expect generic entries to capture significant share. According to reports, Sandoz could capture a meaningful portion of the market if FDA approval is granted.

At the close, LLY traded between $1,128 and $1,215.76, while SDZNY ranged from $88.64 to $89.6884. Investors now await the FDA's final decision, which typically takes 10-12 months, serving as the next major catalyst for both stocks.