Eli Lilly (LLY) is making waves in the pharmaceutical industry with its groundbreaking weight-loss drug, Zepbound. Recently approved by the Food and Drug Administration, Zepbound is creating a buzz as it offers a new approach to tackling obesity.
Zepbound works by mimicking two gut hormones, GLP-1 and GIP, which play a crucial role in regulating feelings of satiety, blood glucose levels, and the emptying of the stomach. This innovative drug builds upon the success of tirzepatide, the same drug used in Lilly’s diabetes treatment, Mounjaro.
This approval puts Eli Lilly in direct competition with Novo Nordisk, whose weight-loss drug, Wegovy, has been on the market since 2021. However, Zepbound is being offered at a 20% discount to Wegovy, potentially leading to better insurance coverage and higher patient uptake.
Investors are taking note of Eli Lilly’s stock, which is forming a flat base with a buy point at 629.97. This presents an early entry opportunity as the stock remains above its 50-day moving average.
While Zepbound shows great promise, Eli Lilly is also making strides in other areas of medicine. The company is awaiting FDA approval for its Alzheimer’s treatment, donanemab, and has several late-stage assets in the pipeline, including drugs for eczema, prostate and breast cancer, Crohn’s disease, diabetes, and weight loss. Additionally, their experimental obesity treatment, retatrutide, is targeting three gut hormones and has captured the attention of investors.
Despite supply constraints faced by Eli Lilly and Novo Nordisk, analysts are bullish on the sales potential of these weight-loss drugs. Mounjaro is projected to see an 841% increase in sales this year, while Zepbound is expected to generate $75 million in sales. Looking ahead to next year, analysts anticipate $3.79 billion in Zepbound sales, but Wegovy is predicted to remain in the lead with projected sales of $7.97 billion.
With a strong IBD Relative Strength Rating of 96 and a top 10% Composite Rating, Eli Lilly has proven itself as a leader in both fundamental and technical performance. Investors and analysts continue to keep a close eye on the company’s developments in the weight-loss market and beyond.
Frequently Asked Questions
What is Zepbound?
Zepbound is a weight-loss drug developed by Eli Lilly. It mimics gut hormones to improve feelings of satiety, regulate blood glucose levels, and slow down the emptying of the stomach.
How does Zepbound compare to Novo Nordisk’s Wegovy?
Zepbound is being offered at a 20% discount compared to Novo Nordisk’s Wegovy. This competitive pricing may lead to better insurance coverage and increased patient uptake.
What other drugs is Eli Lilly working on?
In addition to Zepbound, Eli Lilly has several late-stage assets in development. These include drugs for Alzheimer’s, eczema, prostate and breast cancer, Crohn’s disease, diabetes, and weight loss. They are also exploring an experimental obesity treatment targeting three gut hormones called retatrutide.