Eli Lilly’s (LLY) weight loss drug Mounjaro has found a place in Hong Kong, according to a Bloomberg report. The pharmaceutical giant has secured the Hong Kong government’s approval to commercially sell its long-term weight management and type 2 diabetes drug in the market by the end of this year. Pharma companies worldwide are in fierce competition to launch their weight loss drugs in the rapidly growing multi-billion-dollar market.
Lilly’s Tirzepatide Shows Solid Potential
Eli Lilly’s weight loss drugs, Mounjaro and Zepbound, contain the active ingredient Tirzepatide. In Hong Kong, Mounjaro’s Tirzepatide-based injections will be available in a device called Kwikpen. The company also received a nod from the Chinese authorities for Tirzepatide in July this year, making it an increasingly popular drug compared to rival Novo Nordisk (NVO). In clinical trials, Eli Lilly’s Mounjaro showed the ability to reduce body weight by up to 25%, coupled with exercise and diet.
Meanwhile, the drug also shows some common side effects, including nausea, vomiting, constipation, stomach pain, and reduced appetite.
The demand for these weight-loss drugs has quickly outpaced supply, forcing the companies to boost production. These drugs were originally developed only for the treatment of diabetes and were called GLP-1 (glucagon-like peptide) 1 agonists. Currently, Novo Nordisk sells only its diabetes drugs in both Hong Kong and China.
Eli Lilly Set to Release Q3FY24 Results
The good news for Eli Lilly comes just days before the company is set to release its Q3 FY24 results. LLY will report its results before the market opens on October 30. The Street expects Eli Lilly to post adjusted earnings of $1.45 per share on sales of $12.09 billion.
The expectations represent meaningful growth over the comparative prior-year period’s figures. In Q3 FY23, LLY posted adjusted earnings of $0.10 per share on sales of $9.50 billion. Analysts are becoming increasingly confident about Eli Lilly’s Tirzepatide-based drugs and other treatments in its solid pipeline.
Is Eli Lilly Stock a Good Buy?
Wall Street is highly optimistic about Eli Lilly stock’s trajectory. On TipRanks, LLY stock has a Strong Buy consensus rating based on 18 Buys versus two Hold ratings. The average Eli Lilly price target of $1,059.22 implies 18.7% upside potential from current levels. Year-to-date, LLY shares have gained 53.9%.
