U.S. pharmaceutical giant Eli Lilly (LLY) says its next-generation weight-loss drug has cleared a late-stage clinical trial in patients who are obese.
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Management said the new weight-loss drug was found to deliver significant weight loss across doses, achieving the main goal of the trial. The results bring Eli Lilly closer to filing for approval of the weekly injection, tentatively called Retatrutide, which works differently from existing shots and pills.
The highest dose of Retatrutide helped patients lose 28.3% of their body weight, or 70 pounds, on average over 80 weeks. That compared with 2.2% weight loss among obese adults who were on a placebo medication. Roughly 45% of the 2,500 patients in the Phase 3 clinical trial achieved 30% or more weight loss.
Eli Lilly’s Weight-Loss Empire
Eli Lilly added that a lower dose of Retatrutide that was included in the latest study was associated with fewer discontinuations due to side effects such as nausea and diarrhea. In a news release, Eli Lilly called 30% weight loss an “incredible number.”
Retatrutide is the latest in a growing number of weight-loss drugs from Eli Lilly. The company also makes the injection Zepbound, and on April 1 of this year, its weight-loss pill Foundayo was approved by the U.S. Food and Drug Administration (FDA).
TD Cowen (TD) recently estimated that Retatrutide could earn annual sales of $3.8 billion in 2030.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 19 Buy, two Hold, and one Sell recommendations issued in the last three months. The average LLY price target of $1,262.85 implies 28% upside from current levels.
