Mounjaro approved to reduce cardiovascular events in adults with diabetes

The FDA approved Eli Lilly's Mounjaro to reduce cardiovascular risks in Type 2 diabetes patients. A trial showed it outperformed Lilly's Trulicity in reducing heart attack and stroke risks by 8%. Mounjaro is not approved for weight loss but is sometimes used off-label; Lilly sells a similar drug, Zepbound, for obesity.

OmniAb (OABI) and Eli Lilly (LLY) announced a global collaboration to develop ion channel therapeutics. Lilly will pay $370M in milestones plus royalties. OABI reported Q2 2026 revenue of $13.4M, up from $3.9M, while LLY reported $23B revenue, up 48% YoY. OABI's model focuses on licensing, while LLY's growth is driven by GLP-1 treatments.

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.