Shares in pharmaceuticals group Eli Lilly (LLY) were higher in pre-market trading today despite the UK’s medicines regulator warning pregnant women that it is unclear whether weight loss jabs could harm unborn babies.
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Lack of Safety Data
The Medicines and Healthcare products Regulatory Agency (MHRA) said there is not enough safety data to show whether taking medicines such as Eli Lilly’s Mounjaro or Novo Nordisk’s (NVO) Wegovy is safe during pregnancy.
Novo’s shares were also higher in pre-market trading.
The MHRA also warned that weight-loss jabs could make contraceptive pills less likely to work in those who are overweight or obese.
It is thought that the contraceptive pill may not be absorbed properly due to side effects of the jabs such as vomiting and diarrhea, and because they slow the emptying of the stomach.
The MHRA is advising people not to take weight-loss injections during pregnancy, while trying to get pregnant, or during breastfeeding. It added that women should be told this information when they begin taking these jabs, but it fears that the message is not getting through.
Growing Demand
In the U.K., the jabs are only available through the state-run National Health Service, but people are still accessing them via sellers on social media or beauty salons.
Dr. Alison Cave, chief safety officer at the MHRA, said there was evidence from animal studies “that these medicines may harm the unborn baby.” However, she added: “But we don’t know whether we have the same effects in humans, so much more data is needed to determine that.”
Despite concerns over the side effects and ethics of these jabs, companies such as Eli Lilly are undertaking a number of trials to find new weight loss products.
The demand is expected to be there. Globally, about 3.8 billion people over 25 and just under 750 million children and young people will be overweight or obese by 2050.
Is LLY a Good Stock to Buy Now?
On TipRanks, LLY has a Strong Buy consensus based on 17 Buy, 1 Hold and 1 Sell rating. Its highest price target is $1,190. LLY stock’s consensus price target is $1,003.60 implying an 31.05% upside.
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