WEBVTT
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Calaruga Shark Media. March fifteenth, twenty twenty four. A private
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jet touches down at Copenhagen Airport. Inside Lars Freuergard Jurgensen,
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CEO of Novo Nordisk, reviews intelligence reports about his American rival.
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Eli Lilly, has just announced they've solved the shortage problem
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that's been Novo's only weakness. Their new manufacturing facility in
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Indiana will triple production of teer Zeppa Tide, the drug
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they call Monjara and zep Bound. Jurgensen's phone buzzes. Novo
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Nordisk's stock has dropped six percent in pre market trading.
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Eli Lilly is up eight percent. In the war for
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America's waistline, every percentage point represents billions of dollars and
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millions of patients. They think they've won, Jurgensen tells his
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lieutenant in Danish. They don't understand. We invented this market.
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We'll bury them with the next generation. Three thousand miles
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away in Indianapolis, David Rix, Eli Lilly's CEO is holding
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his own war council. On the conference room wall. Photos
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of every Novo Nordisk executive, their compensation packages, their weaknesses,
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corporate intelligence has reported that Novo is poaching Lily's top
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formulation scientists, offering triple salaries and Swiss bank accounts. This
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isn't just business anymore. Rix tells his team they want
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to own obesity. We're going to show them that nobody
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out innovates Indianapolis. Welcome back to feuds, power, pride, and payback.
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I'm Marcus Reid. Some feuds are fought with fists, others
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with lawsuits, But the most expensive feud in pharmaceutical history
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is being fought with molecules, manufacturing plants, and marketing budgets
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that exceed the GDP of small nations. This is the
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story of how two century old drug companies went to
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war over GLP one agonists. The drugs better known as Ozepic, Wugovi, Munjaro,
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and zep bound the stakes. A market worth one hundred
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billion dollars annually and growing, the cost billions in R
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and D careers, destroyed by corporate espionage, and a cultural
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transformation that's turned weight loss from personal struggle to pharmaceutical
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arms race. This is Episode twenty nine, The Trillion Dollar Shot,
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Big Pharma's War for America's waistline. Act one the Danish invention.
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To understand how a diabetes drug became the center of
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farmer's biggest war, you need to go back to a
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laboratory in Denmark in the nineteen eighties. Novo Nordisk wasn't
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trying to create a weight loss revolution. They were trying
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to keep diabetics alive. The company, formed from the merger
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of two Danish insulin manufacturers, had been locked in a
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century long rivalry with Eli Lilly over the diabetes market.
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Lily had partnered with Frederick Banting and Charles Best to
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commercialize insulin in nineteen twenty three. Novo and Nordisk before
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their merger, had fought back by making insulin cheaper and
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more accessible in Europe for decades. It was a gentleman's
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war patent disputes, pricing competitions, incremental innovations. Both companies made
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steady profits serving diabetic patients. The rivalry was professional, almost cordial.
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That would all change with an accidental discovery in a
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Copenhagen lab. Doctor Dabiera Knutsen wasn't looking for a weight
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loss drug when she began studying GLP one glucagon like
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peptide one in nineteen ninety one. She was trying to
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create a better diabetes treatment, one that could regulate blood
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sugar without the constant injections and monitoring that made patients
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lives miserable. What she discovered would transform Novo Nordisk from
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a regional insulin maker into the most valuable company in Europe.
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GLP one didn't just regulate blood sugar. It fundamentally changed
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how the body processed food, slowed digestion, and most remarkably
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reduced appetite. Diabetic patients in early trials weren't just seeing
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better glucose control. They were losing significant amounts of weight.
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We knew we had something special, doctor Knutson later recalled.
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But we thought it was a diabetes drug with a
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pleasant side effect. We didn't realize we discovered the holy
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grail of pharma, a safe, effective weight loss medication. It
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took Novo Nordisk twenty years to bring their first GLP
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one drug to market. Victoza, approved in twenty ten, was
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marketed for diabetes, but doctors quickly began prescribing it off
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label for weight loss. The company played KOI publicly while
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secretly pouring billions into developing a more potent version. Meanwhile,
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in Indianapolis, Eli Lilly's executives watched Novo's success with growing alarm.
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They dismissed GLP one drugs as too expensive, too niche,
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suitable only for severe diabetics. By the time they realized
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their mistake, Novo had a decade's head start. It was
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the biggest strategic error in our company's history. One former
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Lily executive told me, we invented commercial insulin, we owned diabete,
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and we let a Danish company eat our lunch because
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we were too proud to follow their lead. David Rix
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became CEO of Eli Lilly in twenty seventeen with a
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single mandate, catch Novo Nordisk in GLP one drugs or
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die trying. What followed was a pharmaceutical arms race that
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would make the Cold War look restrained. Act two, The
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Empire Strikes Back. Rix's first move was to raid Novo's talent.
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Using headhunters and back channel communications, Lily began offering key
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Novo scientists packages they couldn't refuse, double salaries, signing bonuses
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in the millions, and most crucially, the chance to lead
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their own research teams with unlimited budgets. Doctor Sarah Chen,
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a brilliant formulation chemist who'd spent fifteen years at Novo
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Nordisk perfecting their injection devices, was approached at a conference
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in San Diego. The Lily recruiter didn't beat around the bush.
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Name your price. Whatever Novo is paying you, we'll triple it.
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We need your expertise and we're willing to pay for it.
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Chen's defection in twenty eighteen sent shock waves through Novo's
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Copenhagen headquarters. She didn't just bring her expertise, she brought
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knowledge of Novo's pipeline, their manufacturing processes, their five year
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strategic plan. Novo sued for trade secret theft. Lilly countersued
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for anti competitive practices. The legal fees alone reached fifty
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million dollars before both companies agreed to settle out of court.
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But the talent war was just beginning. Both companies began
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recruiting from each other with the intensity of sports teams.
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Before a championship. Scientists linked in profiles became scouting reportsorts,
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conference attendances were monitored. One researcher reported being approached by
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corporate intelligence agents who wanted to know about his boss's
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divorce and whether financial pressure might make him amenable to
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switching sides. While the talent war raged, both companies raced
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to develop better GLP one drugs. Novo's semiglutide, marketed as
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ozempic for diabetes and wugovi for weight loss, hit the
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market first, but Lily's Maunjarro and zep bound was more potent,
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combining GLP one with another gut hormone called gip. The
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clinical trial battles were fierce. Both companies recruited patients aggressively,
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sometimes from the same medical centers. There were accusations of
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data tampering, patient poaching, and statistical manipulation. When Lily announced
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that Manjarro showed superior weight loss to ozempic and head
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to head trials, Novo's stock dropped fifteen percent in a
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single day. It wasn't just about the science anymore, one
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clinical researcher told me. It was about narratives, perception, stock prices.
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We weren't just running trials. We were fighting a propaganda
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war Act three, the shortage Wars. By twenty twenty three,
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both companies faced a problem they'd never anticipated, demand that
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outstripped their wildest projections. Social media influencers, celebrities, and TikTok
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trends had turned ozepic into a cultural phenomenon. Everyone from
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Elon Musk to Chelsea Handler admitted using it. The drugs
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designed for diabetics were being bought by anyone who wanted
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to lose twenty pounds. The shortages created a new battlefield.
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Novo blamed Lily for hyping demand they couldn't meet. Lily
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blamed Novo for restricting supply to keep prices high. Both
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were probably right behind the scenes. A vicious fight erupted
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over manufacturing capacity. Both companies needed the same specialized injection
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pen devices made by a handful of suppliers. They began
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outbidding each other for contracts, sometimes offering to buy entire
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factories just to lock out their rival. In one extraordinary incident,
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Novo executives learned that Lily was about to sign a
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deal with a critical supplier in Switzerland. They chartered a
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private jet, flew to Zurich with a briefcase full of contracts,
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and offered the supplier forty percent more than Lily's bid.
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The deal was signed at three a m in an
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airport hotel. Lily's team arrived the next morning to find
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they'd been out maneuvered. The manufacturing wars extended to raw materials.
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The peptide required for GLP one drugs require complex synthesis
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and specialized facilities. Both companies began buying up suppliers, creating
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vertical integration that would make John D. Rockefeller proud. When
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Novo acquired three peptide manufacturers in twenty twenty three, Lilly
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responded by building the world's largest peptide facility in North Carolina.
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But the real battle was for patients with shortages making
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the drugs hard to find. A gray market emerged online pharmacies,
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compounding facilities, and outright counterfeitters began offering generic versions of
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drugs still under patent. Both companies hired private investigators to
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track down counterfeit operations, sometimes finding their own employees involved
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in the schemes. The human cost was real. Diabetic patients
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who needed these drugs for survival couldn't get them because
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they were being diverted to weight loss clinics in Beverly Hills.
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Support groups formed online where patients shared tips on finding supplies,
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sometimes driving hundreds of miles to pharmacies that might have stock.
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Act four mutually assured construction. By twenty twenty four, both
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companies realized they were in a race that neither could
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afford to lose. Novo Nordisk announced they would invest six
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billion dollars in new manufacturing facilities. Not to be outdone,
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Lilly committed nine billion dollars. The construction race was on
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in Clayton, North Carolina. Novo's new facility rose from tobacco
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fields like a pharmaceutical cathedral. The company hired every available
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construction worker in a fifty mile radius, offering bonuses that
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disrupted the entire local labor market. When Lily announced they
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were building a competing facility and conquered North Carolina just
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two hours away, the competition for workers became cutthroat. Construction
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companies reported being offered bribes to delay one project while
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accelerating another. There were accusations of sabotage, mysterious equipment failures,
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permitting delays, union troubles that seemed to affect one company
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more than the other. The North Carolina governor had to
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personally intervene when both companies threatened to pull their investments
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over what they claimed was favoritism toward their rival. The
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marketing wars were equally intense. When Oprah Winfrey revealed she'd
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used weight loss drugs, both companies pr teams went into
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overdrive trying to claim her endorsement. Celebrity testimonials became weapons,
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with each company recruiting stars to share their journey with
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carefully chosen brand names. The science didn't stop either. Both
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companies raced to develop oral versions of their drugs. Knowing
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that pills would be more convenient than injections, They pursued
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increasingly exotic combinations, triple hormone agonists, drugs that could reverse
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diabetes entirely, medications that might extend lifespan along with reducing weight.
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Corporate espionage reached new heights. Both companies hired former intelligence
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officers to protect their secrets and steal their rivals. Research
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facilities installed military grade security. Scientists were followed home. One
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researcher discovered his apartment had been bugged after discussing preliminary
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trial results on a personal phone call. It felt like
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we were developing nuclear weapons, not diabetes drugs. One Lily
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scientist told me, the paranoia was incredible. We couldn't discuss
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our work with our families. We signed NDA that essentially
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owned our thoughts for life. Epilogue The Thin Wars. As
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we record this episode in twenty twenty five, the Novo
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Lily War shows no signs of ending. If anything, it's intensifying.
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Both companies are now valued at over five hundred billion dollars,
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making them among the world's most valuable corporations. The GLP
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one market has exceeded one hundred billion dollars annually and
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is projected to reach two hundred billion dollars by twenty thirty.
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But the real impact goes beyond corporate valuations. These drugs
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have fundamentally changed how society views weight health and pharmaceutical intervention.
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What began as a medical treatment for diabetes has become
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a cultural phenomenon that's reshaping everything from fashion to food.
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In industries, the rivalry has spawned an entire ecosystem. Telehealth
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companies exist solely to prescribe these drugs. Compound pharmacies operate
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in legal gray areas to meet demand. Insurance companies have
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rewritten policies to limit coverage. Employers debate whether to include
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weight loss drugs and health plants, knowing it could add
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thousands per employee and costs Both companies claim victory, and
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both are probably right. Novo Nordisk remains the market leader
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by revenue their first mover advantage, maintaining their edge, but
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Eli Lilly's drugs show superior efficacy in trials, and their
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manufacturing build out promises to end shortages. First, they've fought
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to a lucrative stalemate, each taking half of a pie
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that grows larger every day. The human cost of this
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pharmaceutical war is harder to calculate. Patients who need these
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drugs for diabetes still face shortages and high prices. The
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long term effects of widespread GLP one use remain unknown.
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The societal pressure to be thin has been medicalized in
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ways that trouble ethicists and physicians. But for Lars Fru,
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Regard Jurgensen and David Rix, the war continues. Both CEOs
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have staked their legacies on dominating this market. Both companies
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have bet their futures on these molecules. Neither can afford
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to loose, so both keep fighting, burning billions in a
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battle for chemical supremacy. In the end, the Novo Lilly
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feud proves an old pharmaceutical truth. The most profitable drugs
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aren't the ones that cure diseases, but the ones that
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treat conditions affecting the wealthy. And in America, nothing affects
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the wealthy quite like the desire to be thin. Some
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feuds end with one company acquiring another. Others end with
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patent exertions in generic competition, But the GLP one wars
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will likely end only when science discovers the next miracle molecule,
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and these titans turn their armies toward conquering that new frontier.
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Until then, two Danish and American giants will continue their
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trillion dollar duel, each shot costing billions, each breakthrough met
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with counter breakthrough, each victory peerish in a war where
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the only winners are the shareholders and the only losers
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are the patients priced out of treatment. The battle for
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America's waistline has become Big Farmers forever war, and like
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all forever wars, everyone claims to be winning while the
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casualties mount and the costs soar beyond reason. I'm Marcus read.
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Thanks for listening to feuds, Power, pride, and payback love drama.
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Join our feuds community on Facebook and Instagram, where thousands
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dissect every corporate battle and Pharmaceutical War, Search Feuds podcast,
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or click the show notes. Because every empire needs citizens
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to chronicle its rise and fall until next time. Remember,
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in pharma, as in life, the real drug is money.