Eli Lilly Launches Weight Loss Drug Foundayo Starting at $149 per Month
Eli Lilly announced that Foundayo is now available to adults with obesity or overweight with weight-related medical problems following the FDA approval on April 1. Foundayo is a once-daily pill for weight loss that can be taken without food or water restrictions. People can now access Foundayo via LillyDirect and telehealth providers, with availability expanding to U.S. retail pharmacies beginning today. Foundayo is available starting at $149 per month at the lowest dose for self-pay patients. Eligible and commercially insured people with coverage for Foundayo may pay as little as $25 per month with the Foundayo savings card. Additionally, eligible Medicare Part D individuals may be able to get Foundayo for $50 per month, beginning July 1.
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- Analyst Upgrades: Guggenheim raised Eli Lilly's price target from $1,163 to $1,183, indicating a 31% upside, while Morgan Stanley increased its target to $1,327, suggesting a 47% potential growth, reflecting optimism about the company's future performance.
- Initial Drug Performance: Despite Eli Lilly's newly approved diabetes pill Foundayo recording only 3,707 prescriptions in its second week, significantly trailing Novo's Wegovy, analysts remain positive about its long-term market potential, believing it can improve market share over time.
- Acquisition Strengthens Oncology Pipeline: Eli Lilly's recent $7 billion acquisition of Kelonia Therapeutics aims to bolster its oncology pipeline, which not only solidifies its position in cell therapy but may also drive future revenue growth through enhanced treatment offerings.
- Upcoming Earnings Expectations: Analysts anticipate that Eli Lilly will report a 38% revenue increase to $17.61 billion in its Q1 earnings on April 30, with expected earnings per share of $6.87, a significant rise from last year's figures, indicating a trend of ongoing performance improvement.
- Prescription Decline: Eli Lilly's weight loss therapies Foundayo and Zepbound saw weekly prescriptions lag behind Novo Nordisk's Wegovy, leading to a premarket stock price drop, indicating intensified market competition.
- Zepbound Prescription Trends: Cantor analyst Carter Gould noted that total prescriptions for Zepbound fell approximately 2% for the week ending April 17, while Novo's Wegovy increased by 7%, reflecting Eli Lilly's sluggish growth in the injectable market segment.
- Foundayo Launch Performance: Eli Lilly's newly launched oral obesity therapy Foundayo recorded 3,707 prescriptions in its first full week, compared to about 18,410 for Novo's oral Wegovy during its launch week, highlighting a significant disparity in market acceptance that could impact investor confidence.
- Investor Scrutiny: Analysts pointed out that Foundayo's prescriptions accounted for only 20% of what oral Wegovy achieved in its first week, which may weaken investor confidence in Eli Lilly's stock, reflecting a cautious market attitude towards new product performance.
- Positive Partnership Outlook: Hims & Hers' collaboration with Novo Nordisk is viewed by JPMorgan as a 'turning point' that not only alleviates key legal concerns but also lays the groundwork for the company's expansion in the GLP-1 weight-loss product sector.
- Market Response: Following a bullish report from JPMorgan, Hims & Hers' shares rose about 4% in pre-market trading on Friday, reflecting market optimism regarding its GLP-1 product line expansion, despite a decline of over 9% in the stock price on Thursday for the third consecutive day.
- Growth Potential: Analysts highlight that Hims & Hers has built a leading direct-to-consumer healthcare platform serving approximately 2.5 million subscribers across various sectors, and it is poised for revenue rebound through further branded partnerships.
- Intensifying Competition: Despite progress in the GLP-1 market, Hims & Hers faces challenges from competitors like Amazon and Ro, which are lowering prices and expanding services to capture market share, potentially impacting Hims & Hers' market position.
- Strong Earnings Season: As of Thursday, 82% of S&P 500 companies have reported earnings exceeding analysts' expectations, with overall earnings projected to rise 15.6% year-over-year, providing a bullish outlook for investors, especially with five major tech companies set to report soon.
- Tech Stocks Stand Out: Among the 'Magnificent Seven', Microsoft, Alphabet, Amazon, and Meta will report on Wednesday, with investors focusing on their substantial capital spending plans for AI infrastructure, which could directly influence their stock prices and potentially drive the market higher.
- Fed Meeting Impact: The Federal Reserve is expected to keep interest rates steady at its meeting on Wednesday, with investors looking for insights on policymakers' views regarding the war's economic impact, which could affect future rate policies, although expectations for rate cuts have significantly diminished.
- Ongoing Geopolitical Risks: The ongoing Middle East conflict poses risks for market volatility, as investors remain cautious about the impact of war on energy prices, with confidence in economic recovery still fragile, potentially leading to future economic pain and market fluctuations.
- Iran War Impact: Next week, global energy prices are expected to spike above $100 per barrel due to the blockade of the Strait of Hormuz, and despite extended ceasefires between the U.S. and Iran, as well as Israel and Lebanon, market tension remains, potentially leading to investor volatility.
- Fed Policy Signals: The Federal Reserve is expected to keep interest rates steady, with market focus on signals for the coming months, especially as first-quarter GDP and personal consumption expenditures price index (PCE) data are set to be released on Thursday, which could influence investor sentiment on economic outlook.
- Big Tech Earnings Week: Five of the
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