Lilly's Market Cap Nears $600 Billion on Surging Demand for Mounjaro and Breakthrough Alzheimer’s Drug Donanemab

Oct 12, 2023 12:01 CST Updated 12:01

Eli Lilly

Global Pharmaceutical R&D and Production Company

The Weight Loss Field Remains Hot，Eli Lilly's market value is still "soaring" and has approached $600 billion.

May 3, Alzheimer's DiseaseNew Drug Donanemab Phase III Clinical Study Successful,Achieved the primary endpoint and all key secondary endpoints.Eli Lilly's Market Value Surged Nearly $25.6 Billion in One Night, Becoming the First Pure Pharmaceutical Company to Break Through the $400 Billion Market Value.

On August 8, Eli Lilly and Company announced its financial report for the first half of 2023, with a total revenue of $15.272 billion, representing a 7% year-over-year increase. This exceeded expectations.Revenue/ProfitDriven by Growth, Eli Lilly's Stock Price Surges 17% Again, Market Value Breaks Through $500 Billion, Becoming the World's First Pure Pharmaceutical Company with a Market Value Over $500 Billion.

The Fastest Volume Expansion Drug in History

Achieving a soaring market value, the mostTo a large extent, it is driven by the company's blockbuster GLP-1 drug.MounjaroThe pull.

Tirzepatide (Mounjaro) is a significant hypoglycemic drug launched by Eli Lilly in May 2022, and it is also the world's first GLP-1R/GIPR dual-target agonist.

Due to its exceptional blood sugar-lowering effects, Mounjaro has achieved strong sales growth since its approval. In the first half of this year, it generated $1.55 billion solely from its diabetes indication.Sales, with Q2 sales reaching $9.8 billion, a 72% increase from the previous quarter, making it the fastest-growing drug in terms of sales ramp-up in history. Based on this, Eli Lilly and Company has further raisedMounjaroFull-year sales forecast to reach $4 billion.

In the Phase III clinical head-to-head trial for blood sugar reduction, Mounjaro outperformed semaglutide, leading to high expectations for its future market prospects.

Beyond lowering blood sugar, Mounjaro also demonstrated significantly more pronounced weight loss effects.

In the SURMOUNT-1 and SURMOUNT-2 studies of Mounjaro for the treatment of obesity or overweight in adults with type 2 diabetes, both demonstrated excellent weight loss effects. The results of the SURMOUNT-1 trial showed that participants who received the maximum dose (15mg) of Mounjaro weekly experienced an average weight loss of 22.5% (approximately 24kg) after 72 weeks. Mounjaro also became the first investigational drug in Phase III clinical trials to achieve an average weight loss of more than 20%. Although there are no corresponding "head-to-head" trials as the final basis, some in the industry believe that tirzepatide's weight loss effect is superior to semaglutide.

Currently, Eli Lilly has rolling submitted the Mounjaro weight loss indication application to the FDA. Once the weight loss indication is approved, its already astonishing sales data will reach new heights.

In addition to lowering blood sugar and weight reduction, Eli Lilly has also expanded more indications for Mounjaro, including the treatment of heart failure with preserved ejection fraction (HFpEF) combined with obesity, NASH, etc.

Many investment bank analysts predict that Mounjaro could become the largest single drug in history.Annual sales may surge to $50 billion.

The Boost of New Alzheimer's Drugs

Another contributor to Eli Lilly's market value growth is itsNew Drug for Alzheimer's DiseaseDonanemab。

In May this year, Eli Lilly and Company announced that its Donanemab reached the primary endpoint and all key secondary endpoints in the Phase III clinical trial TRAILBLAZER-ALZ 2 study.Compared with placebo, it can reduce the rate of cognitive and functional decline (iADRS) by 35%. In contrast, this improvement figure for its competitor is 27%.

This news immediately sparked a frenzy, with Eli Lilly's stock price surging 6.67%. Eli Lilly stated that this data is expected to be used for submitting a full approval application to the FDA before the end of June. If approved, it will become another blockbuster new drug for Eli Lilly.

Recommended Articles of the Week

Reprint please contact BioValley and indicate the source clearly.

﹀

头.png

尾2.png