Categories Other Industries

Promising diabetes drug gives Eli Lilly a shot in the arm

Pharma giant Eli Lilly & Co. (LLY) has reported positive results from the mid-stage clinical trial of its new diabetes drug, which was found to be effective in reducing weight while controlling blood sugar in type-2 diabetes patients. Unlike the single-hormone drugs currently available in the market, the new formulation targets two gut hormones simultaneously.

Investors reacted positively to the announcement that marked a significant breakthrough in diabetes drug development and Eli Lilly’s market value rose sharply Thursday, with the stock price hitting an all-time high. On the other hand, rival drug maker Novo Nordisk (NVO), whose diabetes portfolio mainly comprises the traditional single-hormone drugs, took a huge beating at the bourses.

Betting on the weight-reduction properties of the new formulation, Lilly is looking to evaluate it further for related conditions like obesity. Once the drug is cleared for commercial use, tentatively after the late-stage trial to be carried out by the end of 2021, Lilly would gain an edge over its peers whose diabetes portfolio is currently limited to the single hormone drugs.

Betting on the weight-reduction properties of the new formulation, Lilly is looking to evaluate it further for related conditions like obesity

“Despite the progress we’ve made in diabetes management, people living with type-2 diabetes often need additional treatments as their condition progresses. That’s why our researchers continue innovating — to help make lives better,” said Jeff Emmick, VP of product development at Lilly Diabetes.

Merck posts upbeat Q2 results

Experts point out that the dual qualities of the drug would be helpful to the large population of Americans suffering from type-2 diabetes, a condition that is closely linked to obesity. With no potential competitor in the market yet, the new drug is expected to become a part of Lilly’s large diabetes portfolio that currently accounts for nearly 40% of the company’s annual revenue.

Eli Lilly shares have been on a steady upward trajectory in recent months, gaining about 29% since the beginning of the year. The stock reached a new peak this week, exceeding the previous highs seen a decade ago.

Lilly’s gain was Novo Nordisk’ loss. Novo’s shares fell more than 7% in the early hours Thursday and traded lower throughout the session. Over the past 12 months, the stock lost about 12%.

Eli Lilly beats Q2 estimates; stock surges

Most Popular

Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO

Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top