Core Insights - Eli Lilly's weight loss drugs generated approximately $10 billion in revenue in the most recent quarter, significantly contributing to the company's overall revenue growth [1][5] - The company has signed a deal with former President Donald Trump to lower the prices of its weight loss drugs, which could impact revenue and access for patients [2][6] Company Overview - Eli Lilly's weight loss drugs, including tirzepatide (Mounjaro and Zepbound), are part of a class of dual GIP/GLP-1 receptor agonists that help control appetite and blood sugar levels, leading to significant weight loss [2] - The demand for these drugs has been so high that they have appeared on the FDA's shortage list [2] Financial Performance - The weight loss portfolio has driven a 54% increase in Eli Lilly's total revenue, leading to a total revenue of $17 billion in the recent quarter [5] - The company has increased its full-year revenue guidance due to the momentum from its weight loss drugs [5] Pricing Agreement - The agreement with Trump will lower the price of Zepbound and the oral weight loss drug candidate, orforglipron, for Medicare and Medicaid patients [7][8] - Medicare patients will pay a maximum of $50 per month for these drugs, down from a list price of about $1,000 [8] - Self-pay patients will pay between $299 and $499 for prescriptions, reflecting a $50 discount [9] Implications of the Deal - The pricing deal is expected to broaden access to Eli Lilly's drugs, potentially increasing the patient base and revenue [10][11] - The agreement includes a National Priority Voucher for orforglipron, which may expedite regulatory review, and provides exemption from import tariffs for three years [10][11] - Despite potential impacts on margins, the overall outlook for Eli Lilly remains positive, with expectations for continued revenue growth [11]

Core Insights - Viking Therapeutics has made significant progress with its investigational weight loss drug, which is part of a market projected to reach $100 billion by the end of the decade [1] - The company's stock experienced a surge of over 100% following positive clinical trial results, but has since declined by 44% over the past year [2][3] - Viking is developing VK2735, a dual GIP/GLP-1 receptor agonist, with promising results in both injectable and oral forms [7][8] Company Developments - Viking's weight loss program includes an injectable version of VK2735 currently in phase 3 trials and an oral version in phase 2 trials [7] - In the phase 2 study, participants using the injectable form achieved an average weight loss of 14.7% after 13 weeks, while the oral version showed an average weight loss of 12.2% [8] Industry Context - The current market leaders in weight loss treatments are Novo Nordisk and Eli Lilly, whose GLP-1 drugs have transitioned from diabetes treatment to effective weight management solutions [6] - Viking's candidates are positioned to compete in a lucrative market, potentially challenging existing leaders or attracting acquisition interest from larger companies [2][3]