Lilly reports positive final trial results for weight-loss pill, says it’s headed for regulatory approval
Eli Lilly reported encouraging trial results for its next-generation weight-loss pill, putting it on track to file for regulatory approval by the end of the year.
The pill, orforglipron, resulted in up to 10.5% weight loss in overweight or obese patients with diabetes in a late-stage trial, Lilly said Tuesday. The company shot up more than 4% on Tuesday.
“With these positive data in hand, we are moving with urgency toward global regulatory submissions to potentially meet the needs of patients who are waiting,” Kenneth Custer, Lilly’s head of cardiometabolic health, said in a statement. “If approved, we are ready to offer a convenient, once-daily pill that can be scaled globally — removing barriers and redefining how obesity is treated around the world.”
The company reported similar results in a late-stage trial less than three weeks ago. That trial disappointed Wall Street, which was hoping for higher weight-loss numbers from the once-daily pill. That news overshadowed a cheery earnings report, which showed its weight loss drugs outsold Novo's for the first quarter ever.
Even with Tuesday's gains, the stock is down over 10% in the past month.
Analysts at Bank of American reiterated their "buy" rating and $900 price target on Lilly after the announcement, saying its still ahead of the game when it comes to finding the next weight loss drug. "To us, LLY undisputedly remains in pole position in obesity," they wrote on Tuesday.
While Lilly's pill may not help patients lose more weight than the injectables currently on the market, there are a still some major upsides:
Pills are less scary than needles, so naturally more people will likely be pulled in.
Pills are cheaper to manufacture than injector pens. This is particularly important as both Novo and Lilly struggle to get insurance providers to cover their drugs and build direct-to-consumer models.
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