Eli Lilly's Weight-Loss Pill Wins Regulatory Clearance in China

Eli Lilly achieved a major regulatory milestone after China approved its daily weight-loss pill orforglipron, which is sold under the brand name Foundayo. Following a Reuters report on Thursday, the drug became the country's first authorized oral obesity treatment. In pre-market trading, Eli Lilly shares climbed nearly 3%, with the stock trading up 2.8% to hit a record high.

The regulatory clearance provides Eli Lilly an advantage over Danish competitor Novo Nordisk in the world's second-largest pharmaceutical market. While Novo Nordisk received approval for injectable Wegovy in China in 2024, its oral Wegovy alternative was submitted in August but has yet to gain approval. In China, orforglipron enters a market where weight-loss therapies have relied on injections from rivals such as Pfizer, Innovent Biologics, and Novo Nordisk.

The market opportunity remains substantial, with China's National Health Commission forecasting that the proportion of overweight or obese citizens could exceed 65% by 2030. Furthermore, analysts at J.P. Morgan project that yearly revenue generated by GLP-1 weight-control therapies in China could expand to RMB 30 billion ($4.5 billion) within five to seven years, up from RMB 3 billion to RMB 4 billion.

Foundayo has expanded its global footprint since securing U.S. Food and Drug Administration clearance in April, having launched in the United Kingdom and the United Arab Emirates. The pill can be ingested without food or fluid constraints. During the third quarter, Foundayo generated $184 million in revenue, bringing total sales since introduction to $281 million. Eli Lilly's overall third-quarter revenue surged 39% to $24.4 billion, supported by strong demand for Mounjaro and Zepbound.

Separately, Richter announced a strategic collaboration granting Eli Lilly worldwide rights to develop estetrol (E4) combinations in cardiometabolic conditions and women's health, as well as an option to co-commercialize FYLREVY domestically. Eli Lilly will also buy roughly $15 million of Richter ordinary shares. Meanwhile, on November 11, 2026, a former sales employee filed a lawsuit in a Texas federal court against Eli Lilly, claiming wrongful dismissal in November 2023 after protesting alleged off-label marketing of Mounjaro.