Investors of pharmaceutical company Eli Lilly (NYSE:LLY) were in high excitement on Wednesday after the company said it had gained approval from U.K. and U.S. regulators for its weight loss drug. However, it appears that the approval was just half of what Eli Lilly needs for its drugs to take off, at least in the U.K.
Earlier on Thursday, the pharma giant disclosed that its injection pen has yet to receive approval in the U.K. The injection pen is important, as it’s what users will use to administer the obesity and weight loss drug, Mounjaro.
Lilly said the injection pen in the U.K. differs from the one it plans to use in the U.S. With the recent development, U.K. customers may have to wait longer before the drug will reach them.
Despite the delay, Eli Lilly said it would continue to work with U.K. regulators. Meanwhile, the company stated that it has already submitted an alternative injection pen for approval.
Mounjaro’s (marketed as Zepbound in the U.S.) entrance into the weight loss market pits it against competitors such as Novo Nordisk’s (NYSE:NVO) Ozempic and Wegovy. According to an announcement yesterday, Zepbound will be available in the U.S. by year-end.
Shares of Eli Lilly fell by over 4% in Thursday’s afternoon trading session. So far, LLY stock has gained 63.9% this year.
Is Eli Lilly Stock a Buy, Sell, or Hold?
With 12 Buys and two Holds ratings, LLY commands a Strong Buy consensus rating on TipRanks. The average Eli Lilly price target of $644.21 implies 8.32% upside potential from current levels.
