Eli Lilly (NYSE: LLY) has been posting outstanding financial results over the past few years. The company owes this success partly to its work in the weight-loss market. Eli Lilly's Zepbound is the leader in this niche and is growing sales rapidly.
However, some investors fear that the party won't last much longer. As new, competing weight loss drugs enter the market, Eli Lilly will lose market share and pricing power, leading to slower sales growth, or so the argument goes. The good news is that Eli Lilly is preparing for that possibility, and part of the company's strategy is to develop weight loss medicines that cater to nearly every kind of patient.
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For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Zepbound was Eli Lilly's first weight loss drug to earn approval. It's a highly effective injectable medicine administered once weekly.
But some patients don't like needles. To cater to them, Eli Lilly developed Foundayo, an oral anti-obesity medicine that was approved in April. As the company points out, its strategy has worked: More than 80% of Foundayo prescriptions have been for patients who had never taken GLP-1s before.
In other words, Foundayo helped Eli Lilly expand its market and reach people it otherwise wouldn't have reached. Retatrutide, Eli Lilly's next-gen medicine, may do the same. Although Zepbound is effective, retatrutide seems to be even better, based on phase 3 data the company has revealed.
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