Topline
Shares of Eli Lilly soared Thursday morning after the pharmaceutical giant announced a clinical trial of its once-daily weight loss pill, orforglipron, demonstrated effectiveness consistent with other injectable GLP-1 weight loss drugs, such as Lilly’s Mounjaro and Novo Nordisk’s Ozempic.
Eli Lilly and Company, Pharmaceutical company headquarters in Alcobendas, Madrid, Spain. (Photo by … More
Key Facts
Orforglipron is the first GLP-1 drug in pill form to successfully complete a phase III trial, which is a study that tests the safety and efficacy of a new treatment.
The trial compared the effectiveness of orforglipron in adults with type 2 diabetes and blood sugar levels not within the recommended range to a placebo of diet and exercise alone.
Study results showed success in lowering A1C, or average blood sugar levels, as well as significant weight loss, with participants on the highest dosage losing 16 pounds on average during just the 40-week trial–similar results to the average weight lost on Ozempic over the same timeframe and slightly less than Mounjaro.
Once a phase III trial is complete, a pharmaceutical company can request approval from the Food and Drug Administration.
Eli Lilly’s stock price was up 13% to $832 in early morning trading Thursday, while competitor Novo Nordisk was down 8% to $57.
How Do Glp-1 Drugs Work?
GLP-1 drugs mimic a hormone called glucagon-like peptide 1 by creating more insulin to help lower blood sugar, which can help control type 2 diabetes, according to the Mayo Clinic. It is unclear, however, exactly how the drugs result in weight loss, but they appear to curb hunger and slow the movement of food in the digestive tract, causing patients to eat less. These drugs are expected to help the approximately 589 million adults living with diabetes, according to the International Diabetes Federation, a number that’s expected to grow by 264 million over the next two decades.
Key Background
Eli Lilly has been in a tight race with Ozempic and Wegovy-maker Novo Nordisk to enhance the potency of GLP-1 drugs and create a pill version in addition to the injectables that are already on the market. In an April 8 research note, Goldman Sachs analysts said Lilly is at the top of the sector in terms of growth and expects the company’s anti-obesity medication franchise to grow from $14.6 billion in 2024 to $43.3 billion by 2030.
Further Reading
Dow Slides 500 Points As UnitedHealth Stock Heads To Worst Day In 17 Years (Forbes)
How Ozempic, Wegovy, Mounjaro, Zepbound May Help Treat Other Diseases: Here’s What To Know (Forbes)
