Eli Lilly (NYSE:LLY) is an Indianapolis-based company that discovers, develops, and markets human pharmaceuticals to a worldwide client base. Shares of this top health care stock jumped 3.2% for the trading session on Wednesday, November 8. The stock has now climbed 69% in the year-to-date period. What was behind Eli Lilly’s recent jump?
Ozempic and other weight loss drugs in the GLP-1 class have attracted considerable attention in 2023. Indeed, a recent analysis piece from Bank of Montreal projected that the obesity drug market was set to reach $100 billion by 2035. Eli Lilly is in a terrific position in dominate this hugely lucrative market in the United States through to the 2030s and beyond.
On Wednesday, November 8, 2023, the Food and Drug Administration (FDA) approved one of Eli Lilly’s most anticipated obesity treatments. This has opened the door for what is anticipated to be one of the top-selling medicines in history. The drug will be marketed under the name Zepbound and is already sold as a diabetes treatment under the brand name Mounjaro. It stands to serve as direct competition to Novo Nordisk’s obesity drug Wegovy, Novo’s weight loss follow-up to Ozempic.
Analysts and experts are rightfully excited about the potential of Zepbound and its competitors going forward. Eli Lilly has set itself up to be a fierce competitor in the gigantic North American market, which should encourage investors to keep a very close eye on this stock in the New Year and far beyond.