MW Eli Lilly's stock soars as successful trial of weight-loss pill is a game changer

By Ciara Linnane

If approved, the pill is expected to be far easier to administer than current injectables-and far easier to manufacture

Eli Lilly & Co.'s Inc.'s stock soared 11% early Thursday, after the drug maker reported positive results from a late-stage trial of a GLP-1 treatment for Type 2 diabetes and obesity in pill form.

The company $(LLY)$ said the drug called orforglipron showed statistically significant results in the Phase 3 trial and a safety profile that was consistent with injectable GLP-1 medicines. The once-daily treatment lowered A1C by an average of 1.3% to 1.6% across doses at 40 weeks, and reduced weight by an average of 16 lbs. at the highest dose. A1C is a test used to measure blood sugar.

The drug is the first oral small-molecule GLP-receptor agonist to successfully complete a Phase 3 trial, said Lilly in a statement. For now, the popular new class of drugs only exists in injectable form and a pill version is expected to be a game-changer given the greater ease with which it can be administered.

"We are pleased to see that our latest incretin medicine meets our expectations for safety and tolerability, glucose control and weight loss, and we look forward to additional data readouts later this year," said Lilly CEO David A. Ricks in prepared remarks.

"As a convenient once-daily pill, orforglipron may provide a new option and, if approved, could be readily manufactured and launched at scale for use by people around the world."

Lilly, along with Denmark's Novo Nordisk $(NVO)$ (DK:NOVO.B), is a leader in the GLP-1 space with its mounjaro diabetes treatment and zepbound as an obesity treatment. The drugs work by mimicking a gut hormone that controls appetite.

They have proved highly popular, creating shortages that are expected to be overcome once a pill version is approved.

Many drug makers, including smaller names like Viking Therapeutics Inc. $(VKTX)$and Terns Pharmaecuticals Inc. $(TERN.UK)$, are rushing to develop their own pill treatments.

The Lilly trial enrolled 559 adults with Type 2 diabetes and inadequate glycemic control with diet and exercise alone. The participants were based in the U.S., China, India, Japan and Mexico, and were administered either 3 mg, 12 mg, or 36 mg of orforglipron or placebo. The study was started in 2023 and further data releases are expected later this year and into 2026.

In a promising move, Lilly said mean body weight reduction did not reach plateau by 40 weeks-meaning even more weight loss is possible.

The company is now planning to present the data at the American Diabetes Association's 85th Scientific Sessions and will publish them in a peer-reviewed journal.

"Lilly expects to submit orforglipron for weight management to global regulatory agencies by the end of this year, with the submission for the treatment of type 2 diabetes anticipated in 2026," said the statement.

The stock is down 2.1% in the last 12 months, while the S&P 500 SPX has gained 5.1%.

Read now: Viking Therapeutics' new contract is a game changer. Here's how much money it could bring in.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

April 17, 2025 07:48 ET (11:48 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.