Inside the Obesity Drug Gold Rush: Eli Lilly’s Rise and a New Era for Insulin Patches ( $ABT $LLY $BBNX $MODD )

By John F. Heerdink, Jr.

Eli Lilly’s (LLY) relentless push into obesity and diabetes therapeutics is reshaping the future of metabolic health—and igniting a wave of innovation among smaller device makers intent on redefining patient care at home. Building on strong demand for its blockbuster weight-loss and diabetes drugs, Eli Lilly raised its full-year guidance after third-quarter sales soared past Wall Street estimates, powered by Zepbound and Mounjaro. These GLP-1 receptor agonists—designed to mimic gut hormones—continue to reshape the competitive landscape, even as Lilly refines dosing and explores next-generation approaches, including the investigational oral GLP-1, orforglipron.

Industry Tailwinds: Obesity and Diabetes Demand

The global surge in obesity and Type 2 diabetes diagnoses is fueling a bidding war for cutting-edge treatments that not only help patients lose weight but also manage blood sugar more effectively. Lilly’s pipeline remains robust despite shuttering select trials for muscle-sparing obesity drugs, as it pivots toward therapies with additive effects and higher regulatory hurdles. Meanwhile, demand for injectable and oral GLP-1 agents has forced manufacturers to rethink supply chains and prescriber education, with Trulicity shortages finally resolved and payers closely scrutinizing new entrants.

Beta Bionics: A Device Innovator Steps Up

Beta Bionics (NASDAQ:BBNX) is riding the same tailwinds and posted a 63% surge in Q3 revenue as adoption of its iLet Bionic Pancreas accelerates. The company increased its full-year revenue forecast to over $96.5 million, citing strong uptake in both durable medical equipment and pharmacy channels. iLet’s streamlined design and new software enable easier cartridge changes and fewer redundant alerts for users. Bolstered by regulatory clearances—including a special 510(k) for feature updates—Beta Bionics is prepping for a bihormonal system feasibility trial in New Zealand, which could mark a breakthrough in automated glucagon and insulin delivery.

The recent partnership with Abbott (ABT), integrating iLet with dual glucose–ketone sensors, represents a notable advance in real-time, personalized diabetes management. CEO Sean Saint emphasized a strategic focus on expanding patient access and launching the Mint patch pump by 2027—a move that could solidify Beta Bionics’ position as a pivotal provider in automated insulin management as GLP-1 therapy proliferates.

Modular Medical: Pivot System Redefines Simplicity

Modular Medical (NASDAQ:MODD) is advancing the future of insulin delivery with its Pivot Insulin Delivery System, a next-generation tubeless patch pump designed for adults seeking a streamlined, cost-effective alternative to legacy devices. Building on the FDA-cleared MODD1 pump, Modular Medical recently secured Institutional Review Board approval for a feasibility study—simulating real-world conditions by administering sterile saline to adult participants for up to 90 days. This research aims to assess the device’s long-term wear, usability, and user feedback to drive improvements ahead of the company’s planned FDA 510(k) submission in October.

MODD1’s microfluidics technology set a new bar for affordable, reliable insulin delivery, while the Pivot system incorporates further enhancements: smartphone integration, single-use battery convenience, and intuitive design to break down barriers for so-called “almost-pumpers”—adults who could benefit from pump therapy but have hesitated to adopt. Modular Medical completed a clinician-focused study with MODD1 and intends to leverage the feedback to refine Pivot before launch. The company is also targeting CE Mark certification in 2026 and is building gamified training modules to ease onboarding for both patients and clinicians.

Industry analysts note that demand for modular, telemedicine-compatible devices—like the Pivot system—will help drive scalable solutions for outpatient and home care. The market for modular medical infrastructure, including smart wearable technologies and flexible room setups, is expected to nearly double by 2033 as chronic care management continues its transformation.

Outlook: Convergence and Competition

The proliferation of advanced medications like those from Eli Lilly is catalyzing innovation and consolidation across both pharma and device segments. As GLP-1 therapies become standard of care, companies such as Beta Bionics and Modular Medical (MODD) are leveraging technology and patient-centric design to expand access and improve outcomes. With greater automation, seamless data integration, and decentralized care delivery, the diabetes ecosystem is rapidly evolving—placing patients at the center of a new era for metabolic health.