Eli Lilly shares moved higher in early Wednesday trading following data from a study that showed its blockbuster weight loss treatment Zepbound to be more effective than market leader Wegovy.
Eli Lilly (LLY) said patients in a long-term study lost around 20.2% of their body weight while using Zepbound, compared to around 13.7% for those using the Novo Nordisk-made NOVO Wegovy.
The study also noted that adult patients taking Zepbound who were either obese or overweight, but did not suffer from diabetes, achieved five key benchmarks in the study that were superior to those taking Wegovy.
The results could offset concerns, raised earlier this autumn, that U.S. sales were struggling to meet Wall Street forecasts thanks in part to supply chain snarls.
“Given the increased interest around obesity medications, we conducted this study to help health care providers and patients make informed decisions about treatment choice,” said Lilly’s senior vice president of global medical affairs Leonard Glass.
“We are thrilled that today’s findings showed the superior weight loss of Zepbound, which helped patients achieve 47% more relative weight loss compared to Wegovy. Zepbound is in a class of its own as the only FDA-approved dual GIP and GLP-1 receptor agonist obesity medication, and it’s changing how millions of people manage this chronic disease,” he added.
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Eli Lilly shares were marked 2.3% higher in premarket trading to indicate an opening bell price of $832.00 each.
Earlier this fall, Eli Lilly posted weaker-than-expected third-quarter earnings, and slashed its full-year profit forecast, following disappointing sales of its two blockbuster treatments.
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Worldwide revenue rose 20% from the year-earlier period to $11.44 billion, well shy of Wall Street’s $12.1 billion forecast, with Mounjaro and Zepbound sales driving a 200%-plus gain for the group’s New Products division.
$LLY – Eli Lilly’s Zepbound Tops Novo Nordisk’s Wegovy in Weight Loss in New Study — WSJ
Zepbound Helped People Lose 20.2% of Body Weight After 72 Weeks, Versus 13.7% for Wegovy — WSJ
Weight-Loss Results Are From Study Sponsored by Zepbound Maker Eli Lilly — WSJ
— *Walter Bloomberg (@DeItaone) December 4, 2024
U.S. sales of the treatments, however, were hit by what the company called “inventory decreases in the wholesaler channel,” which includes Cardinal Health and McKesson.
Overall, Zepbound sales were $1.26 billion, well shy of the LSEG forecast of $1.69 billion, while Mounjaro sales of $3.11 billion missed Wall Street’s $4.2 billion target.
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