Eli Lilly stock (LLY) popped by more than 5% on Wednesday after the Food and Drug Administration (FDA) approved the company’s new weight-loss pill that Eli Lilly says can be taken “any time of day without food or water restrictions.”

The approval sets up a new phase of competition between Eli Lilly and its main competitor, Danish drugmaker Novo Nordisk (NVO), in the weight-loss drug space. Novo Nordisk’s stock fell 1% on the news.

Eli Lilly’s orforglipron drug, which goes by the brand name Foundayo, is designed to help overweight adults or adults with obesity lose weight. The pill is taken once a day and will begin shipping on April 6, Lilly said in its announcement. Soon after, the pill will be available through US retail pharmacies and telehealth providers.

“As a convenient, once-daily oral pill that delivers meaningful weight loss, this is obesity care designed for the real world,” Eli Lilly CEO David Ricks said.

Eli Lilly and Novo Nordisk have been locked in a battle for control of the lucrative weight-loss market. While Novo initially led the market with the launch of its Ozempic and Wegovy GLP-1 drugs, Eli Lilly’s Zepbound has quickly gained popularity.

Over the past two years, the competition between the companies has shifted away from injections and toward pill forms of the drugs, which offer a lower barrier for patients.

Novo Nordisk’s Rybelsus was the first oral semaglutide treatment approved by the FDA, though the Type 2 diabetes drug was not approved for weight loss. In December, the FDA also approved Novo’s Wegovy pill for weight loss.

While injectable forms of weight-loss drugs remain the gold standard for efficacy, according to trial results, both Eli Lilly and Novo Nordisk have leaned into pill formulations.

Results for Eli Lilly’s new Foundayo pill show participants lost 11.1% of their body weight, while results for the company’s injectable Zepbound show an average weight loss of 20.2%.

At Novo Nordisk, results for the pill form of Wegovy show participants losing roughly 14% of their weight, while results for the Danish drugmaker’s injectable Wegovy show participants shedding 15% of their weight.

Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.