Shares of drugmaker Eli Lilly have been on a steady rise, up approximately 50% in the past year. This positive momentum continued with a 1% gain on Monday and a total increase of about 24% so far this year. The company’s success stands out in the healthcare sector, which has struggled to keep pace with the broader market.
Eli Lilly is set to announce its second-quarter earnings on Tuesday, with analysts predicting sales of $7.6 billion and earnings of $1.98 per share. However, the real spotlight is on their groundbreaking treatment for Type 2 diabetes, Mounjaro, which has astonishing potential as a weight-loss drug.
Anticipation is building as the Food and Drug Administration is expected to grant approval for Mounjaro to treat obesity later this year. Industry analysts believe that Mounjaro could potentially become the highest-selling medicine of all time.
But Eli Lilly’s innovation doesn’t stop there. They have other obesity medications in the pipeline, such as retatrutide, that show even more promise than Mounjaro. Analyst Chris Shibutani from Goldman Sachs predicts a combined sales estimate of $40 billion by 2032 for Mounjaro, retatrutide, and another weight-loss pill called orfoglipron.
These are exciting times for Eli Lilly as they continue to make groundbreaking advancements in the field of healthcare. With their relentless dedication to developing groundbreaking treatments, the future looks brighter than ever for this pharmaceutical giant.
Beyond Mounjaro: A Look at donanemab – The Lilly Alzheimer’s Disease Therapy
Lilly’s breakthrough Alzheimer’s disease therapy, donanemab, has been making waves in the medical community. This innovative drug, which operates similarly to Biogen’s Leqembi, has the potential to revolutionize treatment options for Alzheimer’s patients. While Biogen’s drug received full approval earlier this summer, Lilly faced a setback when the FDA rejected their request for accelerated approval in January. However, there is optimism that a decision on full approval will be reached by the end of the year.
Investors eagerly await the outcome of a study conducted by Novo Nordisk, one of Lilly’s key competitors in the pharmaceutical industry. This study examines the impact of Novo Nordisk’s weight-loss drug, Wegovy, on the rates of heart attack and stroke. Given that Wegovy operates similarly to Mounjaro, Lilly’s drug, the results of this study hold significant implications for both drugs and the potential willingness of insurers to cover them. It is anticipated that the trial’s results may be released at any moment.
During Tuesday’s investor call, there may be inquiries regarding the upcoming launch of donanemab, particularly as Biogen continues to introduce Leqembi to the market. While initial indications suggest that Medicare coverage for Leqembi is less restrictive than initially feared, uncertainties remain regarding the number of individuals who will opt for this drug and concerns over its safety.
If you are interested in learning more about Lilly’s recent earnings and their innovative therapies, join their investor call today at 9 a.m. Eastern.