Eli Lilly (LLY) is considering testing its blockbuster weight-loss drugs in individuals who are not yet overweight but are at risk of weight gain, according to an exclusive Financial Times report. This early move suggests that the pharmaceutical major may be looking to broaden the use of its medications beyond those with obesity. Eli Lilly is known for its weight-loss drugs Mounjaro and Zepbound.
LLY Plans to Study Weight Loss Drugs in People Who Are Not Overweight
In light of this development, Dave Ricks, the CEO of Eli Lilly, told the Financial Times in an interview that the company is drawing up plans to study its anti-obesity medications in people whose body mass index (BMI) does not currently classify them as overweight. So far, the trials for Eli Lilly’s weekly anti-obesity injection, Zepbound, as well as its experimental weight-loss pill, orforglipron, have included patients with a BMI of 30 or higher, or those with a BMI of 27 and above who also have a weight-related health complication.
However, Ricks argued that there could be justification for lowering this threshold, particularly for orforglipron, which results in more moderate weight loss compared to the other treatments.
LLY Intends to Expand the Market for Weight Loss Drugs
Moreover, Ricks’ remarks indicate that the company is looking at ways to expand the potential market for weight loss drugs. Many analysts contend that the weight loss drugs market could become the most popular class of drugs ever. In fact, according to Goldman Sachs projections cited by the report, these medications could generate up to $130 billion annually at their peak. Furthermore, it is estimated that 890 million adults suffer from obesity globally, with an additional 1.6 billion adults classified as overweight.
As a result, the high demand for Zepbound and its competitor, Novo Nordisk’s (NVO) Wegovy, has led to both drugs being listed as in shortage by the U.S. Food and Drug Administration. To meet the surging demand for these drugs, both companies have invested significantly to expand their manufacturing capabilities.
Analysts Bullish on LLY See Sales Growth for Mounjaro
Even analysts bullish on LLY stock expect to “see significant growth in sales, especially with the ramp-up of Mounjaro and the launch of Zepbound,” according to the TipRanks “Bulls Say, Bears Say” tool.
Is LLY a Good Stock to Buy Now?
Analysts remain bullish about LLY stock, with a Strong Buy consensus rating based on 18 Buys and two Holds. Over the past year, LLY has surged by more than 60%, and the average LLY price target of $1,049.18 implies an upside potential of 18.6% from current levels.
