Eli Lilly Is Building a Weight Loss Drug for Every Kind of Patient
The company's peers in the pharmaceutical industry should be worried.
Overview
Eli Lilly (NYSE: LLY) has been posting outstanding financial results over the past few years. The company owes this success partly to its work in the weight-loss market. Eli Lilly's Zepbound is the leader in this niche and is growing sales rapidly. However, some investors fear that the party won't last much longer. As new, competing weight loss drugs enter the market, Eli Lilly will lose market share and pricing power, leading to slower sales growth, or so the argument goes. The good news is that Eli Lilly is preparing for that possibility, and part of the company's strategy is to develop weight loss medicines that cater to nearly every kind of patient. Here's what investors need to know.
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Zepbound was Eli Lilly's first weight loss drug to earn approval. It's a highly effective injectable medicine administered once weekly. But some patients don't like needles. To cater to them, Eli Lilly developed Foundayo, an oral anti-obesity medicine that was approved in April. As the company points out, its strategy has worked: More than 80% of Foundayo prescriptions have been for patients who had never taken GLP-1s before.
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Originally published at www.fool.com.