Why Did Eli Lilly Stock Jump 15% in April?
Shares of Eli Lilly (NYSE: LLY) climbed 15.3% last month, according to S&P Global Market Intelligence. Promising drug trial developments and a strong outlook from management in its first-quarter report provided the upward momentum to the pharmaceutical stock.
Eli Lilly caught Wall Street's attention early in April after announcing positive results from an early clinical trial for an experimental Alzheimer's drug. The pharmaceutical company has been attempting to develop Alzheimer's treatments for decades, and its latest candidate significantly reduced the accumulation of amyloid plaque that builds up in the brains of people with the disease. What is still unclear is whether the drug candidate, remternetug, provides significant clinical benefits to patients, and even if it eventually is approved by regulators, it's still a long way from being commercialized. However, the trial results were an exciting step forward from both a clinical and financial standpoint.
Later in the month, a major announcement on Lilly's diabetes drug tirzepatide thrilled investors. In a clinical trial, patients using tirzepatide achieved impressive weight loss results. A label expansion from the FDA allowing the drug to be prescribed specifically for weight loss could come in the near future, and that's a highly lucrative treatment market.
Source Fool.com
