"Got One Injection and Feel Full?"... Company with Stock Soaring 60% Due to Obesity Drug

Eli Lilly Announces Phase 3 Results for 'Mounjaro'
Most Effective Obesity Drug Developed to Date
"Could Achieve Record-Breaking Revenue Among Pharmaceuticals"

The stock price of Eli Lilly, which develops obesity treatments, surged nearly 60% following research results showing that participants in a Phase 3 clinical trial lost an average of 29 kg in body weight.

On the 26th (local time) at the New York Stock Exchange, Eli Lilly traded at $568.10 per share (approximately 771,000 KRW).

Eli Lilly's stock price has risen 57.1% since the beginning of this year. Considering that the Dow Jones Industrial Average fell 1.09% during the same period, this represents a high return.

From the 14th to the 17th, Eli Lilly revealed the Phase 3 clinical trial results of the once-weekly diet injection "Mounjaro" at the Obesity Week 2023 conference held in Texas, USA.

Mounjaro, approved as a treatment for type 2 diabetes in the United States, the European Union, Canada, and other regions, is increasingly being prescribed for obesity treatment in addition to diabetes.

Participants in the clinical trial who took Mounjaro for 1 year and 6 months (84 weeks) lost an average of 29.2 kg in body weight. These clinical results were also published in the October 15 issue of the international journal Nature Medicine.

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The main ingredient of Mounjaro is tirzepatide. It works by mimicking the glucagon-like peptide-1 (GLP-1) hormone, which increases insulin secretion from the pancreas, similar to semaglutide in Wegovy.

By promoting insulin secretion, it makes the brain feel "full," thereby suppressing appetite. The clinical results of Mounjaro are known to be the most effective among obesity drugs developed to date.

Mounjaro has already joined the ranks of "blockbuster drugs" within one year of its launch, generating sales of $1.55 billion (approximately 2.1 trillion KRW) in the first half of this year alone. Sales in the second quarter reached $979.7 million (approximately 1.33 trillion KRW), a 72.3% increase from the previous quarter.

This significantly exceeded the estimated sales of $743 million predicted by securities firms and the industry.

Mounjaro is currently awaiting formal approval from the U.S. Food and Drug Administration (FDA). Once approved, sales are expected to increase explosively. The market views obesity treatments as an emerging pharmaceutical sector with vast growth potential.

U.S. investment bank Goldman Sachs forecasted, "With the advent of groundbreaking obesity treatments, the related market size will reach $100 billion (approximately 136 trillion KRW) by 2030, led by Eli Lilly in the U.S. and Novo Nordisk in Denmark."

This prediction is based on the assumption that about 15 million out of approximately 150 million American adults who are obese or overweight by 2030 will receive anti-obesity drug treatment for chronic weight management. This figure excludes diabetic patients.

Goldman Sachs stated in its report, "This could be a golden opportunity to achieve the highest revenue ever among pharmaceuticals."