Shares of Eli Lilly Soar to Record High After Surge in Sales of Mounjaro Diabetes and Weight Loss Drug
August 8, 2023
Pharmaceutical giant Eli Lilly experienced a significant boost in its stock value as shares skyrocketed to a record high on Tuesday. The surge came after the company reported a substantial increase in sales of its diabetes and weight loss drug, Mounjaro. Rival company Novo Nordisk also saw a surge in its shares following a promising clinical trial of its diabetes drug, Wegovy, as both companies continue their push for full approval of the drugs for weight loss.
Eli Lilly’s stock jumped by nearly 14% as of early Tuesday afternoon, reaching an all-time high of just over $514. This increase represents the company’s largest single-day percentage jump since November 2020. The spike can be attributed to an auspicious quarterly earnings report, which unveiled significant growth in sales of four of its drugs. Sales of Mounjaro, breast cancer pill Verzenio, and antidiabetic medication Jardiance contributed to a 28% revenue increase to $8.31 billion in the fiscal quarter ending on June 30, compared to the same period last year.
Novo Nordisk, known for its popular drug Ozempic, also experienced a drastic rise in shares since the beginning of the year. The stock has climbed nearly 38% year-to-date and increased by almost 16% on Tuesday, reaching a record high of more than $187. The Danish drugmaker’s success can be attributed to the release of large-scale clinical trial results demonstrating the effectiveness of its obesity drug, Wegovy, in reducing the risk of major adverse cardiovascular events by 20%.
One of the driving forces behind Eli Lilly’s sales surge is the popularity of weight-loss drugs such as Novo Nordisk’s Ozempic. Sales of Mounjaro between March and June totaled nearly $980 million worldwide, with $915.7 million coming from the United States alone. This represents a significant increase from $16 million during the same period last year and exceeded analysts’ expectations by more than $200 million.
Eli Lilly has been pushing for fast-track approval of Mounjaro for weight-loss purposes since April. The drug, also known as tirzepatide, has shown promising results in clinical trials, with overweight or obese adults losing up to 16% of their weight over 17 months. Eli Lilly’s push for full FDA approval comes after the drug was approved last year as a diabetes medication to improve blood sugar levels in adults with type 2 diabetes. The company expects Mounjaro to receive FDA approval for weight loss as early as this fall, following the drug’s fast-track designation in October 2022.
Novo Nordisk’s Wegovy received FDA approval for chronic weight management in overweight and obese adults with certain weight-related conditions, including high blood pressure, high cholesterol, or type 2 diabetes. However, Ozempic, approved in 2017 to lower blood sugar in adults with type 2 diabetes, has not yet received FDA approval for weight loss.
The positive performance of both Eli Lilly and Novo Nordisk in the pharmaceutical market demonstrates the growing demand for effective weight-loss drugs. As Mounjaro and Wegovy gain momentum, these companies are well-positioned to capitalize on this trend.
For more information, please visit:
– “Eli Lilly Pushes For Fast-Track Approval Of Mounjaro As Weight-Loss Drug” – Forbes
– “Diabetes Drug Mounjaro Expected To Be Approved For Weight Loss Soon: What To Know And How It Compares To Similar Drugs” – Forbes
– “What To Know About Retatrutide: Unapproved Drug Boasts Greater Weight Loss Than Ozempic, Mounjaro, Wegovy” – Forbes.
About the Author:
The article was written by a Boston-based reporter, covering various topics such as the environment, local government, and the arts. The reporter’s previous work includes contributions to NPR, WBUR, WCAI, and Nantucket Today. With a degree in political science from the University of Massachusetts, Amherst, the reporter can be reached at [email protected].
Source: Forbes