SAN DIEGO, CA – Eli Lilly’s latest weight-loss medication, Zepbound, has demonstrated a remarkable 94% reduction in the risk of developing type 2 diabetes among overweight or obese adults with prediabetes after three years of weekly treatments, the pharmaceutical giant announced on Tuesday.
The news sent Eli Lilly’s stock soaring, with shares climbing 4.4% to $962.02 in early trading, contributing to a more than 60% increase in the company’s stock value this year alone.
The findings stem from a large-scale clinical trial involving 1,032 adults, where those receiving Zepbound injections significantly outperformed the placebo group in reducing their risk of progressing to type 2 diabetes. BMO Capital Markets analyst Evan Seigerman remarked on the unprecedented results, noting, “We just don’t see numbers like this in the metabolic space.” He also compared the outcome to Novo Nordisk’s competing drug, which showed a 73% reduction in diabetes risk in a similar late-stage trial.
The Indianapolis-based company emphasized that this data, derived from the longest completed trial of Zepbound, underscores the enduring benefits of tirzepatide, the active compound in both Zepbound and another of Lilly’s treatments, Mounjaro.
Both Eli Lilly and its competitor, Novo Nordisk, have been actively working to broaden the applications of their obesity medications to include related health conditions, aiming to reach a larger patient demographic and secure more extensive insurance coverage.
The promising results from the “SURMOUNT-1” trial, initially revealed in 2022, were pivotal in securing U.S. regulatory approval for Zepbound as a weight-loss treatment. However, there is still uncertainty about whether the company will pursue regulatory approval for Zepbound specifically as a preventive treatment for diabetes, according to Leerink analyst David Risinger. If granted, such an approval could provide a substantial boost to Lilly’s stock.
Lilly also noted a concerning trend during the trial: patients who discontinued the medication began regaining weight and showed some increase in the progression to type 2 diabetes. More detailed findings are expected to be presented in future reports.
This new data arrives amid growing worries about the long-term adherence to weight-loss medications. A recent report from Reuters highlighted that only 25% of U.S. patients who were prescribed Novo Nordisk’s Wegovy or Ozempic for weight loss two years ago are still using the drugs today.
