FDA approves Zepbound, a new obesity drug that will take on Wegovy

Drugmaker Eli Lilly & Co. received Food and Drug Administration approval for an obesity drug called Zepbound that will be a rival to Novo Nordisk's Wegovy. (Darron Cummings/AP)

An obesity drug called Zepbound won approval for use in adults from the Food and Drug Administration Wednesday, ushering in a new rival to Novo Nordisk's blockbuster Wegovy.

Eli Lilly & Co., maker of Zepbound, says it shows greater weight loss at a lower list price than Wegovy. The Lilly drug will be available in the U.S. by the end of the year. A version of the shot, known generically as tirezepatide, is already sold as Mounjaro to treat Type 2 diabetes.