There’s a Black Market for Eli Lilly’s Unapproved GLP-1 Drug. Here’s Why That’s Bullish
Can anyone challenge Eli Lilly in the weight loss space?
Overview
Eli Lilly (NYSE:LLY) is one of the undisputed leaders in the GLP-1 market. The company's tirzepatide, sold under the brand names Mounjaro (for diabetes) and Zepbound (for chronic weight management), is the world's best-selling GLP-1 medicine. Tirzepatide has been powering Eli Lilly's recent strong financial performance. However, the company is working on next-gen GLP-1 medicines that could be even better. One of them, retatrutide, isn't even approved yet, but there is already a black market for it. Here's why investors should take that as a bullish sign.
Image source: The Motley Fool.
First, some background on retatrutide. It is a triple agonist, meaning it mimics the actions of three separate gut hormones: GLP-1, GIP, and glucagon. There is no such medicine currently approved by the U.S. Food and Drug Administration (FDA). Tirzepatide, for instance, mimics the action of GLP-1 and GIP, an approach that has already proved highly successful. Retatrutide's triple-pathway mechanism could, in theory, yield even better outcomes. And so far, clinical trial data support that. In a phase 3 study, retatrutide led to an average weight loss of up 28.3% in 80 weeks.
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Originally published at www.fool.com.