Eli Lilly fights for a position in the pharmaceutical market
Eli Lilly and Company, an American pharmaceutical conglomerate, announced the approval of the drug Foundayo by the Food and Drug Administration (FDA) in the United States market.
According to the manufacturer, the tablet used in adults suffering from obesity or overweight “in combination with a low‑calorie diet and increased physical activity helps patients lose weight and maintain the new weight.”
David A. Ricks, the company’s president and CEO, stated that Foundayo is a “convenient oral medication taken once daily that provides significant weight loss.”
The Eli Lilly product, compared to preparations offered by Danish competitor Novo Nordisk, is expected to feature a simpler dosing method.
The company’s strategy, according to analysts, may work in its favor for its listings.
“In the initial phase of the drug’s market introduction, investors will closely observe whether the lack of meal influence on the action of Foundayo will affect its popularity among patients,” said Evan Seigerman, BMO Capital Markets analyst.
In clinical trials, the Eli Lilly drug at the highest dose achieved an average body weight loss of 12,4%.
According to Bloomberg, the competitive Novo Nordisk product achieved slightly higher results in other studies.
Based on available information, the U.S. company has already produced billions of doses of Foundayo to ensure its rapid market entry.
Wall Street forecasts indicate that the drug’s sales could generate 18 billion USD by 2030.
Nevertheless, as the company’s president claims, “currently less than one in ten people who could benefit from GLP‑1 drugs actually take it.”
Key barriers to the adoption of similar drugs, according to Ricks, include “social stigma, perceived therapy complexity, or the belief that patients’ conditions are not serious enough to require treatment.”
“We believe that Foundayo can help level the playing field for people suffering from obesity or overweight and dealing with weight‑related complications,” he said.
The verification process for Foundayo’s efficacy, as Bloomberg notes, lasted less than four months thanks to a new FDA program aimed at accelerating access to similar drugs.
Lilly reported side effects of taking the drug and submitted an application for its assessment in over 40 countries.
In each of these countries, after obtaining the necessary approvals, the company plans to launch the product.
“The use of Foundayo together with other GLP‑1 receptor agonists is not recommended. It is unknown whether Foundayo is safe and effective in children. Foundayo may cause thyroid cancers, including thyroid cancer,” warned in an official statement.
See also: Shares of Novo Nordisk or Eli Lilly? This sector “should find a place in the long‑term investment portfolio” – says expert
Eli Lilly shares rise, Novo Nordisk discounted
The share price of Eli Lilly and Company at the close on Tuesday, April 1 rose by 3,78% to 954,52 USD.
A day later in pre‑market trading, the company’s shares fell by 0,74% to 947,5 USD.
Since the beginning of the year, Eli Lilly shares have risen by 11.3%.
Chart. Eli Lilly and Company share price
Source: TradingView.
The share price of Novo Nordisk fell on Wednesday by 0,73% to 36,48 USD.
On Thursday, the company’s shares deepened the decline by 1,56% to 35,91 USD in pre‑market trading.
Since January, Novo Nordisk shares have fallen by 29.32%.
On the Copenhagen exchange, the shares reached 236,90 DKK after a 2.6% rise.
Chart. Novo Nordisk share price
Source: TradingView.
See also: Novo Nordisk shares sank! Double‑digit decline occurred after a bleak company announcement
