Pharmaceutical company Eli Lilly (LLY) saw its stock gain 1.73% on Monday alongside approval from the Food and Drug Administration (FDA) for Zepbound as a treatment for moderate-to-severe obstructive sleep apnea in obese adults. This makes Zepbound the first and only prescription medicine to get approval for this use.
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Zepbound already has approval to treat other conditions, including obesity and diabetes. The drug’s ability to help patients lose weight is behind its designation as a treatment for sleep apnea. This condition is often tied to obesity and reducing weight can alleviate the condition.
A Clinical Trial Supports the FDA’s Approval
Eli Lilly’s phase 3 clinical trials evaluated using Zepbound as a sleep apnea treatment. Those trials saw patients experience five times fewer sleep disruptions than those on a placebo. This also came with an average weight loss of 45 lbs, or 50 lbs if the patient was using PAP therapy in combination with Zepbound.
A large number of patients in the U.S. could benefit from using Zepbound for their obstructive sleep apnea. The Insomnia and Sleep Institute of Arizona estimates that roughly 40 million people in the U.S. suffer from sleep apnea with men more likely to have the condition. That covers about 15% of adults in the country.
Julie Flygare, J.D., president and CEO of Project Sleep, praised news of Zepbound getting FDA approval for OSA treatment. She hopes it will “spark more meaningful conversations between patients and health care providers and ultimately lead to better health outcomes.”
Is LLY Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Eli Lilly is Strong Buy based on 15 Buy and two Hold ratings over the last three months. With that comes an average price target of $1,039.73, a high forecast of $1,250, and a low forecast of $885. This represents a potential 35.42% upside for LLY shares.
