Eli Lilly Could Soon See US FDA Approval for Obesity Drug


Eli Lilly (LLY) could see higher highs.

All as new obesity drug trial results set it up for potential US FDA approval. In fact, in recent trials, patients with Type 2 diabetes lost 15.7% of their body weight within 72 weeks, according to the company.

In addition, Eli Lilly noted that “The study met both co-primary objectives and all key secondary objectives for tirzepatide compared to placebo for both estimands. Those taking tirzepatide lost up to 15.7% (34.4 lb. or 15.6 kg) of body weight for the efficacy estimand. SURMOUNT-2 is the second global phase 3 clinical trial that evaluated the efficacy and safety of tirzepatide for chronic weight management. The trial evaluated 938 adult participants with obesity or overweight and type 2 diabetes.”

LLY last traded up $8.78 a share to $385.12.

Also, LLY missed on recent earnings but raised its full-year guidance. Adjusted EPS came in at $1.62, as compared to expectations for $1.73.  Sales came in at $6.96 billion, as compared to estimates of $6.86 billion. Eli Lilly also raised its guidance for the year, now expecting revenue of between $31.2 billion and $31.7 billion, compared with its previous projections of $30.3 billion to $30.8 billion. The company increased its adjusted earnings guidance to $8.65 to $8.85 per share for the year, up from $8.35 to $8.55.