Lilly Stocks Drop as EloraTZP Beats Zepbound but Tests Tolerability

Eli Lilly (LLY) reported Phase 2b and Phase 3 trial results for EloraTZP and retatrutide, showing significant weight loss and A1C reductions in obesity and type 2 diabetes patients. The company plans to advance both candidates to later-stage trials and regulatory submissions. These results could expand Lilly's cardiometabolic portfolio and reinforce its growth narrative in obesity treatments.

Eli Lilly's orforglipron met noninferiority criteria for CV outcomes in a phase 3 trial, showing improvements in glycemia and bodyweight. The drug was approved in the US for weight management and is under review for T2D treatment. The trial compared orforglipron to insulin glargine, with 4.2% of patients on orforglipron experiencing major adverse CV events vs 5.0% on glargine. Orforglipron showed superiority in A1c and body weight reduction but not in MACE-3 outcomes.

Eli Lilly's experimental obesity drug, retatrutide, showed significant weight loss in late-stage trials. Lilly plans to seek FDA approval in early 2025. The drug is already being sold online for up to $600 per vial. Cost and side effects are major reasons people stop taking obesity drugs. Insurers and states have reduced coverage, leading drugmakers to sell directly to patients. Dr. Fatima Cody Stanford highlights the need for more research on the drug's long-term effects and safety.

Eli Lilly's tirzepatide (Zepbound) showed greater weight loss than Novo Nordisk's semaglutide (Wegovy HD) in an indirect comparison presented at the EASD meeting. The study, funded by Lilly, found tirzepatide 15 mg led to 4.5% more weight loss than semaglutide 7.2 mg, though results varied by analysis method. No direct trial has compared these doses.

Eli Lilly announced post-hoc analyses of ATTAIN-1 showing Foundayo reduced predicted 10-year risk of type 2 diabetes and cardiovascular disease. At 72 weeks, reductions were 45.0%, 50.0%, and 57.0% for diabetes and 18.0% for cardiovascular disease at different doses. Foundayo is FDA-approved for weight management.

Eli Lilly and Novo Nordisk presented new clinical data at the EASD meeting, highlighting their weight-loss drugs. Lilly's retatrutide showed 34.9% of patients lost at least 25% body weight, while Novo's Ozempic showed a 6% lower cardiovascular risk. The GLP-1 market is expanding, with ETFs like OZEM, HRTS, and THNR offering diversified exposure to companies like LLY, NVO, PFE, AMGN, and REGN.