Eli Lilly & Co ( (LLY) ) has fallen by -18.64%. Read on to learn why.
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Eli Lilly & Co has experienced a significant stock price decline of 18.64% over the past week, largely due to disappointing results from a late-stage clinical trial for their weight-loss pill. The trial revealed that the pill only helped patients lose about 12% of their body weight over 72 weeks, falling short of the anticipated 15% weight loss. Additionally, side effects such as vomiting and diarrhea led many participants to discontinue the pill, causing investor confidence to wane and resulting in a sharp selloff.
Despite the setback with the weight-loss pill, Eli Lilly reported strong financial results for the second quarter, surpassing Wall Street expectations. The company saw a 172% year-over-year increase in sales of its injectable weight-loss drug, Zepbound, and a 68% rise in sales of its diabetes treatment, Mounjaro. However, these positive financial outcomes were overshadowed by the negative sentiment surrounding the weight-loss pill trial, contributing to the stock’s decline.
Looking ahead, Eli Lilly is involved in several promising clinical studies that could potentially boost its stock performance if successful. These include a Phase 1 study for a treatment targeting sporadic ALS and another for a pan-KRAS inhibitor aimed at KRAS mutant solid tumors. Investors are advised to keep an eye on updates from these trials, as favorable results could enhance Eli Lilly’s position in the competitive pharmaceutical market and potentially reverse the recent downward trend in its stock price.