Eli Lilly (LLY) shares gained more than 4% soon after the opening bell Tuesday as results from a new study moved the drugmaker closer to applying for approval of its experimental weight-loss pill.
Pharmaceutical giant Eli Lilly said it will now move “with urgency” toward getting regulatory approval for orforglipron.
Lilly said it's moving “with urgency toward global regulatory submissions to potentially meet the needs of patients who are waiting.”
Eli Lilly on Tuesday said its daily obesity pill succeeded in another late-stage trial, helping patients with obesity and Type 2 diabetes lose weight and lower their blood sugar levels. The company now has the full clinical trial data required to start filing for approvals of the drug for chronic weight management with global regulators.
Some analysts say Eli Lilly's daily obesity pill, if approved, could still be a viable competitor in the weight loss drug market despite late-stage trial data that disappointed investors. In the trial, orforglipron caused weight loss that missed Wall Street's expectations and came below what Novo Nordisk reported for its oral drug in a separate study.
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Novo Nordisk and Eli Lilly both declined significantly in the last months. This was mainly caused by efficacy uncertainty, further competition and political headwinds. Despite the sell-offs, I currently think just one of the two is a compelling buy, even offering upside potential of up to 77%.
Dan Deming considers Friday's trading action after Jerome Powell's Jackson Hole speech "remarkable." On stocks he's watching ahead, he expects Eli Lilly (LLY) to rebound off a significant sell-off, Boeing (BA) to soar on its financial recovery and aircraft backlog, and CVS Health (CVS) to capture more market share in the pharma space.
Lilly (LLY) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Lilly's obesity pill orforglipron disappointed with lower weight loss, but its broad late-stage pipeline keeps growth hopes alive.
I invest for long-term total return, focusing on high-quality, dividend-paying industry leaders with strong financials and consistent performance. Despite current headwinds like tariffs and patent expirations, I see long-term opportunity in pharmaceuticals, especially as AI could boost efficiency and profits. My tier-two pharma picks show solid fundamentals, but Eli Lilly stands out for its growth potential, especially in diabetes and weight loss drugs.
Eli Lilly stock is down 5% this month despite strong Q2 results and raised guidance, as data from a study on the obesity pill orforglipron disappointed.