By Denny Jacob

Eli Lilly is getting closer to bringing a weight loss pill to market, but CEO David Ricks notes certain factors need to be considered to prevent prices from ballooning.

The Trump administration earlier in the month announced tariffs that threaten to push import costs higher for pharmaceutical companies in a bid to prompt them to move operating plants out of China and into the U.S.

Ricks in a Fox Business interview Friday said Eli Lilly understands the administration's goals. "Often to make a medicine, you're using materials from all over the world. It'll take time to readjust that supply chain. It's important, I think, that we don't raise the price of medicines unintentionally," he added.

The chief executive also said Eli Lilly needs more "starting materials" - the chemicals going into medicines such as oral treatments - that primarily come from China to be more widely available.

"In many cases, those are made only in China. We need the refined chemicals that we need made in more friendly places, including in the U.S.," said Ricks.

Ricks' comment highlights the fragile balance pharmaceutical companies face as a trade war between the U.S. and China ramps up. While Eli Lilly has a significant presence in the U.S., bringing its developing treatment to market will require stable business conditions.

The Indianapolis company on Thursday said its experimental pill met its goal in a pivotal study, helping diabetes patients lower blood sugar - and even reduce weight, bringing an oral version of the blooming class of drugs closer to patients seeking to lose weight.

Ricks on Friday said the company aims to bring its weight-loss pill to market in 2026.

Eli Lilly shares rallied on the news, up 14% to $839.96. The stock is up around 8% year to date.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

April 18, 2025 11:42 ET (15:42 GMT)

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