Mentioned:
The business of weight loss drugs continues to boom. And now, Eli Lilly is getting closer to launching a new breakthrough drug.
What’s happening:
- Eli Lilly (NYSE: LLY) has announced new positive clinical results from their Phase III clinical trial for their novel weight loss pill orforglipron
Why it matters:
- Eli Lilly’s Phase III clinical trial for orforglipron showed major reductions in both blood sugar levels and body weight in adults who have type 2 diabetes
Going deeper:
- Eli Lilly is planning to submit orforglipron for regulatory approval with the United States Food and Drug Administration to be able to begin selling the pill for both weight loss and as a treatment for diabetes
- GLP-1 drugs for weight loss have become a massive opportunity and soared to cultural popularity, which has pushed Eli Lilly into deepening their bet on new novel therapeutics for rapid weight loss after the breakout success of their flagship GLP-1 drug Zepbound
The intrigue:
- If orforglipron ultimately receives regulatory approval it would become the first time Eli Lilly has ever had an approved therapeutic for weight loss that is a pill instead of an injectable
Market reaction:
- Shares of Eli Lilly surged more than +18% on the announcement
