Core View - Eli Lilly's stock has experienced a significant sell-off, nearing its lowest levels in six months, driven by concerns over supply-demand mismatches for its diabetes and obesity drugs, Mounjaro and Zepbound [1][2] - Despite the sell-off, the company is actively addressing supply constraints and has several growth opportunities, including facility upgrades, new distribution channels, and advancements in its clinical pipeline [4][5][12] Financial Performance and Market Reaction - Eli Lilly's stock price has dropped by as much as 14% since its Q3 earnings report on October 30, and is currently trading 6% lower than pre-earnings levels [9] - Investors were dissatisfied with the financial results of Mounjaro and Zepbound, despite both drugs generating multibillion-dollar revenues, due to supply-demand mismatches [2] Supply Chain and Manufacturing - Eli Lilly acquired a manufacturing facility from Nexus Pharmaceuticals earlier this year and is investing an additional $3 billion to address supply-demand challenges for its medications [5] - The company has formed new partnerships, including with Amazon Pharmacy and Ro, to expand access to its weight loss treatments through direct-to-consumer platforms [5] Competitive Landscape - Competitors like Hims & Hers Health are offering compounded versions of weight loss treatments, which are not FDA-approved, taking advantage of Lilly's supply constraints [3] - In a recent study, Eli Lilly's Zepbound demonstrated a 47% greater relative weight loss compared to Novo Nordisk's Wegovy, with Zepbound users experiencing a 20% weight reduction versus 14% for Wegovy users [5] - Novo Nordisk's new GLP-1 product, CagriSema, failed to meet expectations, leading to a 20% drop in Novo's share price, while Lilly's stock gained 5% on the news [5] Growth Opportunities Beyond Weight Loss - Eli Lilly has gained FDA approval for new medications targeting Alzheimer's disease and eczema, with combined total addressable markets exceeding $60 billion [6] - The company is also working on an oral form of its GLP-1 receptor agonist, orforglipron, which has shown positive indicators in clinical trials [12] Shareholder Returns - Eli Lilly announced a $15 billion share buyback program, signaling management's belief that the stock is undervalued [6] Investment Perspective - The current sell-off presents a potential buying opportunity for long-term investors, as the company has made significant progress in addressing supply issues and expanding its product portfolio [13][8]

Core Insights - The FDA has approved Zepbound, a drug by Eli Lilly, for the treatment of moderate-to-severe obstructive sleep apnea in obese adults, marking a significant advancement in the management of this condition [6][13]. - Zepbound, previously approved as a weight-loss drug, is a GLP-1 receptor agonist that helps in appetite suppression and lowering blood sugar levels [9][12]. - Eli Lilly's market value is estimated at $731.8 billion, with sales of $35.9 billion and profits of $6.1 billion in the current year, ranking it No. 174 on Forbes' Global 2000 list [16]. Drug Approval and Efficacy - Zepbound received FDA approval for use in overweight or obese adults with comorbidities like sleep apnea in November 2023, following promising results from late-stage trials [7][9]. - In clinical trials, adults taking Zepbound lost an average of 45 pounds, significantly more than the 4 pounds lost by those on a placebo, and experienced about 25 fewer breathing interruptions per hour during sleep [18]. Health Implications - Obstructive sleep apnea affects approximately 39 million American adults, leading to increased risks of cardiovascular diseases such as coronary heart disease and stroke [3][2]. - The most common treatment for sleep apnea remains the CPAP machine, although Zepbound's approval suggests potential for weight-loss drugs to provide additional health benefits [9].

An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York, US, on Thursday, March 28, 2024.The Food and Drug Administration approved Eli Lilly's blockbuster weight loss drug Zepbound for treating patients with the most common sleep-related breathing disorder, the drugmaker announced Friday, expanding its use and possibly its insurance coverage in the U.S.The weekly injection is now cleared for patients with obesity and moderate-to-severe obstructive sleep apnea, which refers to ...

Core Insights - Zepbound (tirzepatide) is the first and only prescription medication approved by the FDA for adults with moderate-to-severe obstructive sleep apnea (OSA) and obesity, showing significant efficacy in reducing breathing disruptions and aiding weight loss [15][29][40] Group 1: Efficacy and Clinical Trials - The SURMOUNT-OSA phase 3 clinical trials demonstrated that Zepbound was about five times more effective than placebo in reducing breathing disruptions in adults not on positive airway pressure (PAP) therapy, leading to an average of 25 fewer breathing interruptions per hour compared to five with placebo [17] - In adults on PAP therapy, Zepbound resulted in 29 fewer breathing disruptions per hour compared to six with placebo [17] - After one year, 42% of adults on Zepbound and 50% of those on Zepbound with PAP therapy experienced remission or mild, non-symptomatic OSA, compared to 16% and 14% on placebo, respectively [17] Group 2: Weight Loss Outcomes - Adults taking Zepbound lost an average of 45 lbs (18%) of their body weight, while those on Zepbound with PAP therapy lost an average of 50 lbs (20%), compared to only 4 lbs (2%) and 6 lbs (2%) on placebo, respectively [27] - Up to 50% of adults taking Zepbound no longer had symptoms associated with OSA after one year [26] Group 3: Usage and Administration - Zepbound should be used in conjunction with a reduced-calorie diet and increased physical activity for optimal results [4][29] - The medication is administered via subcutaneous injection once a week, with a starting dose of 2.5 mg that can be increased to a maximum tolerated dose of 10 mg or 15 mg [19][10] Group 4: Safety and Side Effects - Common side effects of Zepbound include nausea, diarrhea, vomiting, constipation, and abdominal pain, among others [34][45] - Serious side effects may include pancreatitis, depression, and potential thyroid tumors, necessitating close monitoring by healthcare providers [6][7][42]

Today's sell-off in Novo Nordisk may be the buying opportunity you've been waiting for.Bad news for Novo Nordisk (NVO -17.34%) Friday was good news for Eli Lilly (LLY 4.92%) and Viking Therapeutics (VKTX 6.33%), its two main rivals in the field of weight loss drugs. This morning, Novo reported headline results from its phase 3 trial of a new weight loss drug, CagriSema, and while objectively not bad, the results were less great than Novo was shooting for.As of 11:05 a.m. ET, Novo Nordisk stock is down a dis ...

The FDA removed Eli Lilly’s (LLY) tirzepatide injection products from the drug shortage list after determining that Lilly’s supply is currently meeting or exceeding demand and will continue to do so in the future. The regulatory body concluded that the shortage of tirzepatide medicines is now resolved. The stock is gaining in the pre-market hours in response to the encouraging news. Lilly markets tirzepatide, a dual GIP and GLP-1 receptor agonist (GIP/GLP-1 RA), as Mounjaro for type II diabetes (T2D) and Ze ...

An injection pen of Zepbound, Eli Lilly’s weight loss drug, is displayed in New York City on Dec. 11, 2023.The Food and Drug Administration on Thursday said the active ingredient in Eli Lilly's weight loss drug Zepbound is no longer in shortage, a decision that will eventually bar compounding pharmacies from making cheaper, unbranded versions of the injection."FDA has determined that the shortage of tirzepatide injection products, which first began in December 2022, is resolved," the agency said in a letter ...

Originally a Biologist, M.Sc in Biomedicine, PhD in Bioengineerings, and +20 years experience in the research and development of novel Cell & Gene Therapies (CGT) tackling several clinical needs including orthopaedics and rare diseases. As an investor, I have been utilising my background in life sciences to assess the potential of novel treatments, including those using CGT, as well as, their capacity to drive shareholders' returns. Thus, as SA analyst, I will be focusing on analysing biotechnology, pharmac ...

Eli Lilly just gave investors several reasons to cheer.The hottest area among healthcare investors right now revolves around advancements being made in weight loss. Known as glucagon-like peptide-1 (GLP-1) receptor agonists, blockbuster drugs such as Ozempic, Wegovy, Mounjaro, Zepbound, and others are completely redefining how care is provided to patients with diabetes or in need of weight management.While Danish-based pharmaceutical company Novo Nordisk (NVO -1.90%) leads the GLP-1 market (thanks in large ...

When you think of a top weight loss drug, chances are that Ozempic is the name that first comes to mind. Although it is approved for diabetes (Wegovy is the equivalent version, which is approved for weight loss), many people have been using it for years to lose weight, and it has been highly effective in doing that. The success of Ozempic and Wegovy has helped the company behind the products, Novo Nordisk (NVO -0.04%), become one of the most valuable healthcare stocks in the world. But in an increasingly co ...