Is OmniAb (OABI)’s Eli Lilly (LLY) Partnership a Game Changer for OABI?

Employer coverage of GLP-1 weight-loss drugs, including Eli Lilly's Zepbound and Mounjaro, dropped from 72% to 60% between 2025 and 2026. Despite this, Lilly's Q2 revenue grew 47.67% YoY to $22.97 billion, with Zepbound and Mounjaro contributing $4.93 billion and $9.94 billion, respectively. The decline in coverage is due to employers' budget constraints and the long-term nature of health benefits. Lilly is mitigating the impact through direct-to-consumer channels and lower-cost programs.

Eli Lilly (LLY) reported Q2 revenue of $22.97B, up 48% YoY, driven by a 60% volume surge in Zepbound and Mounjaro, despite a 13% price decline. Employer coverage for GLP-1 drugs dropped from 72% to 60%, but self-pay prescriptions rose, offsetting coverage losses. LLY shares trade near $1,182 with a forward P/E of 34x.

The FDA approved Eli Lilly's diabetes drug Mounjaro to reduce heart attack and stroke risk in high-risk Type 2 diabetes patients. The approval follows a study showing Mounjaro outperformed Lilly's Trulicity. Lilly also reported positive results for its experimental weight-loss drug retatrutide. Analysts highlight the growing value of GLP-1 medications, with global sales projected to reach $105 billion by 2030.

The FDA approved Eli Lilly's Mounjaro for reducing heart attack/stroke risk in type 2 diabetes patients. Novo Nordisk's Wegovy gained similar approval for non-diabetic adults. Both companies' GLP-1 drugs are being tested for other conditions, including alcohol addiction, Alzheimer's, cardiovascular disease, chronic kidney disease, knee osteoarthritis, liver disease, and sleep apnea.

Eli Lilly and Company's Kenosha facility, acquired in 2024, is part of a $4 billion investment in Wisconsin for injectable medicine production. The site, which received FDA approval in 18 months, is producing drugs like Zepbound and Mounjaro. The facility is expected to support 750 jobs and has attracted attention due to its strategic location and skilled workforce. Wisconsin has also joined a lawsuit against the Trump administration's family planning funding rules. The state collected $450.8 mi

The FDA approved Eli Lilly's tirzepatide (Mounjaro) to reduce cardiovascular risk in adults with type 2 diabetes. The approval follows trial data showing tirzepatide outperformed dulaglutide in reducing major adverse cardiovascular events. According to Lilly, Mounjaro is the most prescribed branded type 2 diabetes medicine in the U.S.