Lilly's Foundayo Nod Launches New Battle With Novo, M&A Mania Continues, Tariffs Hit Pharma

Eli Lilly's new oral obesity drug faces off against Novo Nordisk's Wegovy, while Gilead and Neurocrine make big acquisitions and Trump's tariffs impact the industry.

Apr. 8, 2026 at 10:33am

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Eli Lilly's new oral obesity drug Foundayo has been approved by the FDA, officially launching a competitive battle with Novo Nordisk's oral Wegovy. Meanwhile, the M&A space in the pharmaceutical industry continues to be active, with Gilead Sciences acquiring Tubulis for up to $5 billion and Neurocrine Biosciences buying Soleno Therapeutics for $2.9 billion. Additionally, President Donald Trump has implemented new tariffs on the pharmaceutical industry, though many companies will be exempt. The Trump administration has also proposed changes to the FDA, including permanently authorizing the rare pediatric disease priority review voucher program and creating a new clinical trial notification pathway.

Why it matters

The approval of Lilly's Foundayo sets up an intense competition between the two leading oral obesity drugs, which could impact patient access and treatment options. The continued M&A activity in the industry signals ongoing consolidation, while the new tariffs and policy changes from the Trump administration could significantly affect pharmaceutical companies' operations and drug pricing.

The details

Foundayo achieved an 11% weight loss in Phase 3 trials, compared to over 16% for Novo's Wegovy. However, Foundayo may have an advantage in convenience, as Novo's pill must be taken with water while Lilly's has no such restriction. Gilead is acquiring Tubulis for up to $5 billion, while Neurocrine is buying Soleno for $2.9 billion, continuing the M&A trend in the industry. Trump's new tariffs will impose a 100% tax on many pharmaceutical products, though numerous carveouts mean many companies will be spared. The administration is also proposing changes to the FDA, including permanently authorizing the rare pediatric disease priority review voucher program and creating a new clinical trial notification pathway.

  • Eli Lilly won FDA approval for Foundayo last week.
  • The Trump administration released its proposed 2027 budget on Friday.

The players

Eli Lilly

A major pharmaceutical company that recently won FDA approval for its oral obesity drug Foundayo.

Novo Nordisk

Eli Lilly's chief rival in the oral obesity drug market with its product Wegovy.

Gilead Sciences

A pharmaceutical company that acquired Tubulis for up to $5 billion.

Neurocrine Biosciences

A pharmaceutical company that acquired Soleno Therapeutics for $2.9 billion.

President Donald Trump

The former President of the United States who implemented new tariffs on the pharmaceutical industry and proposed changes to the FDA.

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What’s next

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The takeaway

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