Cross-Sector Collaboration Between Pharma and AI. Novo Nordisk Joins Forces With OpenAI, Can It Regain Market Dominance in the Competition With Eli Lilly?

TradingKey - Danish pharmaceutical manufacturer Novo Nordisk (NVO) on Tuesday announced that it will partner with OpenAI to deploy artificial intelligence across all aspects of its business, from drug discovery to manufacturing and commercial operations.

The maker of Wegovy and Ozempic stated that the collaboration will leverage OpenAI's technology to analyze complex datasets, identify promising drug candidates, and enhance efficiency in manufacturing, supply chain, distribution, and corporate operations. The move is seen as a key step in its transition to "technology-driven growth" following 9,000 job cuts and cost-reduction measures.

Pharmaceutical companies are increasingly utilizing AI to streamline the more tedious aspects of drug development, such as identifying clinical trial participants, selecting trial sites, and preparing regulatory filings.

However, industry executives noted that in certain complex areas, such as discovering significant new molecules (i.e., truly innovative drugs), the expected results have not yet fully materialized, meaning AI has yet to provide breakthroughs or assistance in these domains.

Adopting AI in pursuit of efficiency

CEO Mike Doustdar said in an interview, "Our goal is not to replace our scientists, but to empower them to play a larger role. The purpose of this collaboration is not to cut Novo Nordisk’s current headcount, but to increase productivity and slow the pace of future hiring."

He stated that artificial intelligence will help employees work faster and more efficiently, reducing the need for the significant headcount expansions seen in the past.

However, shortly after taking over as CEO last year, Doustdar announced a restructuring plan involving 9,000 layoffs. This partnership with OpenAI is seen by observers as a strategic move to pursue technology-driven growth following cost-cutting measures.

Novo Nordisk also stated that the partnership agreement includes strict data protection, governance mechanisms, and human oversight arrangements, and will further deepen its existing AI collaborations.

Sam Altman, CEO of OpenAI, stated in a statement: "Artificial intelligence is reshaping every industry. In the life sciences, it can help people live longer, healthier lives. The collaboration with Novo Nordisk will help them accelerate scientific discovery, conduct smarter global operations, and redefine the future of patient care."

Facing a fierce battle for market share

Novo Nordisk is facing a severe situation as Eli Lilly carves out market share and is seeking ways to regain its competitive edge in weight-loss drugs; Eli Lilly's weight-loss drug Foundayo received U.S. approval this month, while Novo Nordisk launched the oral weight-loss drug Wegovy in January this year.

In the injectables segment, Eli Lilly has achieved a comprehensive lead over Novo Nordisk with Tirzepatide. According to Businessweek, Eli Lilly currently holds a market share of approximately 60% in the U.S. GLP-1 (glucagon-like peptide-1) market, and Novo Nordisk has lost its leadership position in the fastest-growing and most profitable weight-loss drug segment. In 2025, Tirzepatide generated approximately $36.5 billion in revenue, securing the top spot as a latecomer, while Semaglutide followed closely with $36.1 billion.

In the oral segment, while Novo Nordisk secured a first-mover advantage, Eli Lilly's catch-up speed is remarkably fast. In December 2025, Novo Nordisk's oral weight-loss version of Semaglutide was approved in the U.S., becoming the world's first oral GLP-1 obesity treatment drug, and was officially launched this January.

Meanwhile, on April 1, Eli Lilly announced that its oral small-molecule GLP-1 drug Orforglipron (brand name: Foundayo) received FDA approval, taking only 50 days from application submission to approval and setting a record for the fastest approval of a new molecular entity since 2002. This is the second oral GLP-1 weight-loss drug to be launched globally.

This catch-up momentum continues to pose market share challenges for Novo Nordisk, which previously held a first-mover advantage.

Can AI Help Novo Nordisk Regain Market Share?

Unlike tech products, drugs lack network effects; Wegovy does not become more effective just because more people use it. More crucially, the pharmaceutical industry lacks true brand loyalty. There are almost no switching costs for consumers moving from a Novo Nordisk drug to one from Eli Lilly.

A study published in JAMA Network Open in March 2026 indicates that patients frequently switched between different weight-loss drugs like Ozempic and Zepbound during the first year, and such switching actually helped improve treatment adherence. This finding is more favorable for Eli Lilly; if patients can easily switch between different drugs, the pharmaceutical companies that occupy market share first do not inherently enjoy a "first-mover advantage."

In other words, patients switching from one drug to another and continuing treatment does not mean they will "flow back" to the brand they originally used.

In the injectables segment, the efficacy advantage of Eli Lilly's dual-receptor mechanism has already relegated Novo Nordisk to the position of a challenger. In the oral medication segment, the two companies have differentiated their product features: Novo Nordisk's efficacy is slightly superior but requires higher adherence, while Eli Lilly stands out for its convenience.

In a market structure characterized by a lack of genuine brand loyalty and near-zero switching costs, whether Novo Nordisk can regain market share depends largely on whether AI can help it significantly shorten new drug R&D cycles and reclaim the initiative in the race for next-generation products.

The partnership with OpenAI is precisely Novo Nordisk's strategic move in the dimension of "R&D efficiency." Whether the full integration of AI—from drug discovery to commercial operations—can help this former "king of pharmaceuticals" outrun time remains to be seen.

However, it should be noted that in the weight-loss drug market, once market share is lost, reclaiming it is far more difficult than maintaining it.