This Big Move by Eli Lilly May Solve the Weight Loss Drug Market's Biggest Problem

Eli Lilly (NYSE: LLY) is one of the world's top pharmaceutical companies, selling treatments for a wide range of diseases -- from diabetes to cancer. But one type of product has stood out in recent times and driven both revenue and share performance for the company. I'm talking about Lilly's weight loss drugs, which are bringing in billions of dollars in revenue.

Lilly sells the compound tirzepatide in two forms: Mounjaro for type 2 diabetes and Zepbound for weight management. Doctors have been known to prescribe either for weight loss patients. Demand is high for these products because they are efficacious, easy to take, and treat a growing problem. The weight loss drug market may reach $100 billion by the end of the decade, according to Goldman Sachs Research.

In fact, demand has been so high that it's been surpassing supply, forcing Lilly and rival Novo Nordisk to invest in additional manufacturing capacity. Recently, Lilly made a new move that could solve this supply issue -- the biggest problem facing these drug makers -- and boost Lilly's already strong earnings.

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Source Fool.com