Pharmaceutical company Eli Lilly (NYSE:LLY) announced on Wednesday that the U.S. Food and Drug Administration has approved Zepbound as a treatment for weight loss. Notably, the company said the medication helped people lose up to 52 pounds in 16 months during trials. Shares of Eli Lilly gained over 2% at the time of writing.
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According to the announcement, the drug is approved for adults who are obese or overweight with at least one weight-related condition. Additionally, Eli Lilly said consumers should expect the drug to be available in the U.S. by year-end. However, it comes with a price tag of about $1,060 for a month’s supply.
With the approval, Zepbound enters into a field of powerful new drugs aimed at helping Americans deal with weight issues and is expected to compete with Novo Nordisk’s Ozempic and Wegovy.
John Sharretts, director of the FDA division, said the approval was necessary to address the increasing rates of both obesity and overweight in the United States.
Is Eli Lilly Stock a Buy, Sell, or Hold?
With 12 Buys and one Hold rating, LLY commands a Strong Buy consensus rating on TipRanks. The average Eli Lilly price target of $649.69 implies 5.72% upside potential from current levels.
