Eli Lilly’s stock soared Thursday morning after the company announced that its once-daily weight loss pill, orforglipron, demonstrated effectiveness comparable to existing injectable GLP-1 medications like Lilly’s own Mounjaro and Novo Nordisk’s Ozempic.
Key Highlights
- Orforglipron has become the first oral GLP-1 receptor agonist to successfully complete a Phase III clinical trial, which evaluates a treatment’s safety and effectiveness.
- The trial assessed orforglipron’s impact in adults with type 2 diabetes whose blood sugar levels were outside the recommended range, comparing it against a placebo group that only followed diet and exercise.
- Results showed notable reductions in A1C levels (average blood sugar) and significant weight loss. Participants receiving the highest dose lost an average of 16 pounds over the 40-week period—comparable to weight loss observed with Ozempic and just slightly less than that of Mounjaro.
- With Phase III completed, Lilly is now positioned to seek FDA approval for orforglipron.
- Following the announcement, Eli Lilly’s shares jumped 13% to $832, while Novo Nordisk’s shares dropped 8% to $57.
How Do GLP-1 Drugs Work?
GLP-1 medications mimic the glucagon-like peptide-1 hormone, which boosts insulin production to help regulate blood sugar—an essential benefit for managing type 2 diabetes, according to the Mayo Clinic. While the exact mechanism behind the weight loss effect isn’t fully understood, these drugs are believed to reduce appetite and slow digestion, leading to decreased food intake. The need for such treatments is growing, with around 589 million adults currently living with diabetes—a number projected to increase by 264 million in the next 20 years, per the International Diabetes Federation.
Background
Eli Lilly and Novo Nordisk are in a competitive race to develop more potent and convenient GLP-1 therapies, including oral formulations to accompany the already-popular injectables. A recent research note from Goldman Sachs (April 8) highlighted Eli Lilly as a sector leader in growth, projecting its anti-obesity drug portfolio to expand from $14.6 billion in 2024 to $43.3 billion by 2030.
