Eli Lilly to seek obesity drug approval that could disrupt weight loss market

Eli Lilly will apply for approval of an weight problems drug {that a} late-stage examine confirmed can slash an individual’s physique weight by nearly a sixth, elevating hopes for a brand new blockbuster remedy to sort out the worldwide weight problems epidemic.

The US drugmaker stated on Thursday {that a} excessive dose of its drug Tirzepatide helped individuals who have sort 2 diabetes and are obese or overweight lose on common nearly 16 per cent of their physique weight, or 15.6 kilogrammes, over nearly 17 months.

It was accepted by the US Meals and Drug Administration final Could to deal with type-2 diabetes underneath the model title Mounjaro, however Lilly goals to faucet the fast-growing marketplace for weight reduction remedies by getting the inexperienced mild to market the drug to deal with weight problems.

A brand new class of weight problems and diabetes medication that in some circumstances can produce weight reduction equal to bariatric surgical procedure, is driving affected person demand and investor pleasure within the sector. Demand for the remedies has been fuelled by endorsements on social media by Hollywood stars and celebrities, together with Elon Musk.

Mounjaro notched up nearly $500mn in gross sales final 12 months and on Thursday Lilly upgraded its 2023 revenue forecasts due to robust demand for the diabetes drug, underlining its potential as a competitor to Novo Nordisk’s weight problems drug Wegovy.

Analysts stated the possible approval of the drug later this 12 months to deal with weight problems would dramatically improve gross sales and will make Tirzepatide the highest-selling drug of all time, with analysts’ forecasts for annual peak gross sales stretching as excessive as $50bn.

Evan Seigerman, analyst at BMO Capital Markets, stated trial outcomes confirmed the “wait is over” and Mounjaro was on a path to regulatory approval and potential peak gross sales of greater than $50bn throughout all indications.

“These knowledge reinforce our view that Mounjaro is the most effective injectable possibility for weight reduction, besting Novo’s Wegovy,” he added. “As soon as accepted, we anticipate fast uptake, given Lilly’s funding in manufacturing.”

Lilly shares rose greater than 3 per cent in pre-market buying and selling following the discharge of its monetary and trial outcomes.

Pharmaceutical corporations are speeding to develop a brand new era of medication to sort out a rising disaster within the US, the place two in 5 folks endure from weight problems, in accordance with knowledge revealed by the Facilities for Illness Management and Prevention.

The World Well being Group estimates about 650mn folks endure from weight problems worldwide. Lilly’s Tirzepatide is run as soon as every week by injection and acts to suppress an individual’s urge for food and improve vitality expenditure.

Lilly and Novo Nordisk nonetheless face a battle to persuade private and non-private insurers to fund their weight problems medication. They argue weight problems causes problems that may be costlier down the road, however could face some pushback from insurers because the market is so giant.

Lilly stated it deliberate to finish its submission for approval of Tirzepatide for weight problems in coming weeks and anticipated a call by the FDA as early as late 2023.

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