Eli Lilly Just Announced More Good News: Time to Buy?
The pharmaceutical business is a tricky one. Developing novel therapies costs hundreds of thousands of dollars, sometimes more. Many never make it to the market despite substantial sums invested by drugmakers. Many of those that do earn approval end up falling short of sales expectations. However, occasionally, some drug therapies pay for the money invested in their development several times over.
Analysts think that's the kind Eli Lilly (NYSE: LLY) has in tirzepatide, the active ingredient in the weight loss medicine Zepbound and the obesity treatment Mounjaro. Tirzepatide has, so far, met the lofty expectations it carries. It recently delivered more positive results from late-stage studies. Let's look into what those could mean for investors.
Tirzepatide first earned approval to treat type 2 diabetes about two years ago. Last year, it won a new indication for obesity. Now, Eli Lilly is targeting obstructive sleep apnea (OSA) with its new crown jewel. Patients with OSA can have trouble breathing properly during sleep due to their throat muscles contracting and blocking air passageways. If left untreated, the condition can contribute to other serious health issues, including various heart problems.
Source Fool.com
