Eli Lilly Launches New Obesity Drug Foundayo
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy LLY?
Source: PRnewswire
- FDA Approval: Eli Lilly's Foundayo™ (orforglipron) has received FDA approval, specifically designed for adults with obesity or overweight and related medical issues, which is expected to significantly enhance patient weight management outcomes.
- Significant Weight Loss: In the ATTAIN-1 clinical trial, participants on the highest dose lost an average of 27.3 pounds (12.4%), compared to just 2.2 pounds (0.9%) in the placebo group, demonstrating Foundayo's efficacy and market potential.
- Convenient Access: Foundayo will be available through LillyDirect®, with commercial insurance patients paying only $25 per month and self-pay patients at $149, which is expected to improve drug accessibility and meet the needs of obesity patients.
- Global Rollout Plan: Lilly plans to launch Foundayo in over 40 countries shortly after approval, aiming to enhance the quality of life for obesity patients worldwide by providing effective treatment options.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 954.520
Low
950.00
Averages
1192
High
1500
Current: 954.520
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Launches New Obesity Drug Foundayo
- FDA Approval: Eli Lilly's Foundayo™ (orforglipron) has received FDA approval, specifically designed for adults with obesity or overweight and related medical issues, which is expected to significantly enhance patient weight management outcomes.
- Significant Weight Loss: In the ATTAIN-1 clinical trial, participants on the highest dose lost an average of 27.3 pounds (12.4%), compared to just 2.2 pounds (0.9%) in the placebo group, demonstrating Foundayo's efficacy and market potential.
- Convenient Access: Foundayo will be available through LillyDirect®, with commercial insurance patients paying only $25 per month and self-pay patients at $149, which is expected to improve drug accessibility and meet the needs of obesity patients.
- Global Rollout Plan: Lilly plans to launch Foundayo in over 40 countries shortly after approval, aiming to enhance the quality of life for obesity patients worldwide by providing effective treatment options.
See More
Ro Partners with Eli Lilly to Launch KwikPen Injection Device
- Product Collaboration Launch: Ro has partnered with Eli Lilly to introduce KwikPen, a prefilled injection pen containing multiple doses of the weight loss drug Zepbound, addressing the growing market demand for obesity treatments.
- FDA Approval and Market Introduction: KwikPen received FDA approval earlier this year and was launched on Lilly's direct-to-consumer site in February, with the lowest dose priced at $299 per month, reflecting the company's focus on the consumer market.
- Delivery Service Innovation: Amazon Pharmacy began offering same-day delivery for KwikPen in March, enhancing consumer convenience and potentially driving sales growth.
- Multi-Dose Pricing Strategy: Ro is launching the multi-dose KwikPen for cash-paying customers, with starter doses of 2.5 mg and 5 mg priced at $299 and $399 per month, respectively, and patients completing refills within 45 days can access higher doses at discounted rates, showcasing the company's pricing strategy flexibility.
See More
Trump Administration Plans 100% Tariffs on Imported Pharmaceuticals
- Tariff Policy Shift: The Trump administration is preparing to impose tariffs of up to 100% on branded drugs from companies that have not negotiated price reductions, potentially impacting major pharmaceutical firms like Eli Lilly, Pfizer, and Novo Nordisk, thereby increasing price volatility in the drug market.
- Manufacturing Incentives: Drugmakers can reduce or avoid tariffs by relocating production to the U.S. or negotiating deals with the administration, aiming to stimulate domestic manufacturing and potentially leading to a resurgence of investments in the pharmaceutical sector.
- Tariff Implementation Details: The draft proposal includes a 20% tariff for companies planning to onshore production, escalating to 100% in four years, which could significantly influence the long-term strategic positioning of the pharmaceutical industry.
- National Security Considerations: The tariff proposal stems from a Commerce Department investigation that identified certain pharmaceutical imports as a national security risk, highlighting the government's heightened focus on the security of drug supply chains.
See More
Trump Administration Plans New Tariffs on Pharmaceuticals
- New Tariff Policy: The Trump administration is preparing to impose new tariffs on pharmaceutical companies that have not struck price reduction deals, with patented drugs facing a potential 100% tariff, which could significantly increase costs and impact drug pricing.
- Exemption Pathways: Drugmakers can reduce or avoid tariffs by relocating production to the U.S. or negotiating agreements with the administration, aiming to encourage domestic manufacturing while potentially reshaping drug supply chains.
- Scope of Impact: Since November, over a dozen major drugmakers, including Eli Lilly, Pfizer, and Novo Nordisk, have secured three-year tariff exemptions through agreements with Trump, indicating a strong governmental stance on drug pricing that may alter competitive dynamics in the industry.
- Future Tariff Plans: The draft outlines a 20% tariff for companies planning to onshore production, escalating to 100% in four years, which could have profound implications for the pharmaceutical sector's long-term strategies amid increasing global market competition.
See More
Novo Nordisk's Oral Semaglutide Outperforms Competitor in Weight Loss
- Weight Loss Comparison: Novo Nordisk's oral semaglutide 25 mg demonstrated approximately 3 percentage points greater weight loss than orforglipron in the ORION study, indicating a significant therapeutic advantage that could reshape market dynamics.
- Tolerability Advantage: The study revealed that patients on orforglipron had about 14 times higher odds of discontinuing treatment due to side effects, particularly gastrointestinal issues, underscoring semaglutide's superior tolerability profile.
- Patient Preference Survey: An independent patient survey indicated that 84% of participants preferred a treatment profile similar to semaglutide, suggesting high acceptance and potential for increased market demand for this drug.
- Market Reaction: Despite semaglutide's demonstrated efficacy, NVO shares fell 1.8% in pre-market trading, while Eli Lilly's stock also edged down 1%, reflecting market caution regarding the competitive landscape of weight loss medications.
See More
Eli Lilly Shares Surge Following FDA Approval of Foundayo
- FDA Drug Approval: Eli Lilly's oral GLP-1 therapy Foundayo (orforglipron) received FDA approval, demonstrating a mean weight loss of 12.4% and cardiovascular benefits in clinical trials, which is expected to significantly expand the underpenetrated patient population and reinforce the company's leadership in the obesity market.
- Stock Price Rebound: Following the FDA approval news, Eli Lilly shares surged 3.8% in the last trading session to close at $954.52, reflecting strong market confidence in its new drug despite an 8.7% decline over the past four weeks.
- Strong Earnings Forecast: The company is expected to report quarterly earnings of $7.53 per share, representing a year-over-year increase of 125.5%, with revenues projected to reach $17.66 billion, up 38.7% from the previous year, indicating robust growth potential.
- Upward Earnings Revision: Over the past 30 days, the consensus EPS estimate for Eli Lilly has been revised 2.3% higher, and such positive earnings estimate revisions are typically correlated with stock price appreciation, suggesting investors should monitor its future performance closely.
See More
Eli Lilly Launches New Obesity Drug Foundayo
- FDA Approval: Eli Lilly's Foundayo™ (orforglipron) has received FDA approval, specifically designed for adults with obesity or overweight and related medical issues, which is expected to significantly enhance patient weight management outcomes.
- Significant Weight Loss: In the ATTAIN-1 clinical trial, participants on the highest dose lost an average of 27.3 pounds (12.4%), compared to just 2.2 pounds (0.9%) in the placebo group, demonstrating Foundayo's efficacy and market potential.
- Convenient Access: Foundayo will be available through LillyDirect®, with commercial insurance patients paying only $25 per month and self-pay patients at $149, which is expected to improve drug accessibility and meet the needs of obesity patients.
- Global Rollout Plan: Lilly plans to launch Foundayo in over 40 countries shortly after approval, aiming to enhance the quality of life for obesity patients worldwide by providing effective treatment options.
See More
Ro Partners with Eli Lilly to Launch KwikPen Injection Device
- Product Collaboration Launch: Ro has partnered with Eli Lilly to introduce KwikPen, a prefilled injection pen containing multiple doses of the weight loss drug Zepbound, addressing the growing market demand for obesity treatments.
- FDA Approval and Market Introduction: KwikPen received FDA approval earlier this year and was launched on Lilly's direct-to-consumer site in February, with the lowest dose priced at $299 per month, reflecting the company's focus on the consumer market.
- Delivery Service Innovation: Amazon Pharmacy began offering same-day delivery for KwikPen in March, enhancing consumer convenience and potentially driving sales growth.
- Multi-Dose Pricing Strategy: Ro is launching the multi-dose KwikPen for cash-paying customers, with starter doses of 2.5 mg and 5 mg priced at $299 and $399 per month, respectively, and patients completing refills within 45 days can access higher doses at discounted rates, showcasing the company's pricing strategy flexibility.
See More
Trump Administration Plans 100% Tariffs on Imported Pharmaceuticals
- Tariff Policy Shift: The Trump administration is preparing to impose tariffs of up to 100% on branded drugs from companies that have not negotiated price reductions, potentially impacting major pharmaceutical firms like Eli Lilly, Pfizer, and Novo Nordisk, thereby increasing price volatility in the drug market.
- Manufacturing Incentives: Drugmakers can reduce or avoid tariffs by relocating production to the U.S. or negotiating deals with the administration, aiming to stimulate domestic manufacturing and potentially leading to a resurgence of investments in the pharmaceutical sector.
- Tariff Implementation Details: The draft proposal includes a 20% tariff for companies planning to onshore production, escalating to 100% in four years, which could significantly influence the long-term strategic positioning of the pharmaceutical industry.
- National Security Considerations: The tariff proposal stems from a Commerce Department investigation that identified certain pharmaceutical imports as a national security risk, highlighting the government's heightened focus on the security of drug supply chains.
See More
Trump Administration Plans New Tariffs on Pharmaceuticals
- New Tariff Policy: The Trump administration is preparing to impose new tariffs on pharmaceutical companies that have not struck price reduction deals, with patented drugs facing a potential 100% tariff, which could significantly increase costs and impact drug pricing.
- Exemption Pathways: Drugmakers can reduce or avoid tariffs by relocating production to the U.S. or negotiating agreements with the administration, aiming to encourage domestic manufacturing while potentially reshaping drug supply chains.
- Scope of Impact: Since November, over a dozen major drugmakers, including Eli Lilly, Pfizer, and Novo Nordisk, have secured three-year tariff exemptions through agreements with Trump, indicating a strong governmental stance on drug pricing that may alter competitive dynamics in the industry.
- Future Tariff Plans: The draft outlines a 20% tariff for companies planning to onshore production, escalating to 100% in four years, which could have profound implications for the pharmaceutical sector's long-term strategies amid increasing global market competition.
See More
Novo Nordisk's Oral Semaglutide Outperforms Competitor in Weight Loss
- Weight Loss Comparison: Novo Nordisk's oral semaglutide 25 mg demonstrated approximately 3 percentage points greater weight loss than orforglipron in the ORION study, indicating a significant therapeutic advantage that could reshape market dynamics.
- Tolerability Advantage: The study revealed that patients on orforglipron had about 14 times higher odds of discontinuing treatment due to side effects, particularly gastrointestinal issues, underscoring semaglutide's superior tolerability profile.
- Patient Preference Survey: An independent patient survey indicated that 84% of participants preferred a treatment profile similar to semaglutide, suggesting high acceptance and potential for increased market demand for this drug.
- Market Reaction: Despite semaglutide's demonstrated efficacy, NVO shares fell 1.8% in pre-market trading, while Eli Lilly's stock also edged down 1%, reflecting market caution regarding the competitive landscape of weight loss medications.
See More
Eli Lilly Shares Surge Following FDA Approval of Foundayo
- FDA Drug Approval: Eli Lilly's oral GLP-1 therapy Foundayo (orforglipron) received FDA approval, demonstrating a mean weight loss of 12.4% and cardiovascular benefits in clinical trials, which is expected to significantly expand the underpenetrated patient population and reinforce the company's leadership in the obesity market.
- Stock Price Rebound: Following the FDA approval news, Eli Lilly shares surged 3.8% in the last trading session to close at $954.52, reflecting strong market confidence in its new drug despite an 8.7% decline over the past four weeks.
- Strong Earnings Forecast: The company is expected to report quarterly earnings of $7.53 per share, representing a year-over-year increase of 125.5%, with revenues projected to reach $17.66 billion, up 38.7% from the previous year, indicating robust growth potential.
- Upward Earnings Revision: Over the past 30 days, the consensus EPS estimate for Eli Lilly has been revised 2.3% higher, and such positive earnings estimate revisions are typically correlated with stock price appreciation, suggesting investors should monitor its future performance closely.
See More
