Research archive for LLY

As you well know, we are big fans of Eli Lilly and their weight-loss drugs. I was astounded to see this map showing the obesity levels per state in America.

There have been some concerns around the Trump administration's treatment of big pharma, especially Robert F Kennedy, the recently appointed Secretary of Health and Human Services. Kennedy is a renowned sceptic about the drug industry and has spoken out against some vaccines. I'm not going to get into that debate here, but what I do know is that the current administration is very Pro-America.

We've been actively accumulating Eli Lilly shares for clients for the last 18 months. We are very bullish on the prospects for their market-leading weight-loss drugs. They also have a very good business making other drugs.

There is so much talk about Eli Lilly and their exciting weight-loss drugs that we often forget about all the other things happening under the hood. Last week they announced a $2.5 billion cash purchase of Scorpion Therapeutics.

Weight-loss drugs such as Ozempic and Zepound have been so effective that they are starting to impact the fashion industry. According to Vogue, secondhand marketplaces are experiencing a surge in the supply of plus-sized women's clothing.

For most of human history, food was very scarce. Advances in agriculture were painfully slow, so standards of living for the masses barely rose.

Eli Lilly reported quarterly results at the end of October that came up short of forecasts, causing its shares to slide over 10%. They have since recovered somewhat. Sales of the company's blockbuster diabetes and anti-obesity drugs, Mounjaro and Zepbound, fell short of very high revenue expectations. Mounjaro sales more than doubled to $3.11 billion and Zepbound sales were $1.26 billion, so they are not exactly battling.

Is there anything that weight-loss drugs can't do? Zepbound will now be used in a trial in the UK to see if it combats unemployment. Eli Lilly will invest £279 million ($364 million) to help tackle Britain's significant health challenges.

The FDA announced that shortages of Eli Lilly's diabetes and weight-loss drugs, Mounjaro and Zepbound, have been resolved after nearly two years. Eli Lilly made a similar announcement a few months ago, but it took some time for the regulator to agree. The drug maker has assured the watchdogs that production can now meet current and future US demand.

Yesterday, Eli Lilly announced 50% price cuts to the two lowest doses of its blockbuster weight-loss medication, Zepbound. This is for patients who opt to purchase them via the company's telehealth platform, LillyDirect. The two doses will be sold in vials instead of inside expensive auto-injector pens.

I read an interesting story in the FT last week, which I wanted to share. The story showed how hard it is to know early on if a new drug will become a blockbuster.

Eli Lilly jumped 3% on Tuesday on news that Tirzepatide reduces the risk of developing Type 2 diabetes by 94% in obese or overweight adults. Insulet Corp, a maker of insulin delivery devices, dropped 6.9% on the same news. Tirzepatide is the active ingredient in Lilly's popular weight loss injection Zepbound and diabetes drug Mounjaro.

We first suggested that investors should buy the shares of weight-loss drug maker Eli Lilly in this video clip published two years ago, you can watch it here, on YouTube.

We really like the GLP-1 weight loss theme for a few reasons. Who doesn't want to lose a bit of weight? There is also the added benefit that health insurance companies are willing to pay for these treatments, to cover a growing list of ailments. It makes sense; reducing obesity will reduce obesity-linked health problems.

Vestact clients have been accumulating Eli Lilly shares, on our recommendation. Their weight-loss drug Zepbound will soon be supported by medical aids around the world. Slimmer people have much better health and longer life-expectancy, and go on paying their premiums. We expect that half of the world's adults will be on GLP-1 treatments in time.