Why Eli Lilly Stock Is Slumping Today
Shares of Eli Lilly and Company (NYSE: LLY) were slumping on Thursday, falling 5.4% lower as of 10:48 a.m. ET. Was there bad news for the big drugmaker? Nope. On the contrary, Lilly actually had good news.
The company announced Thursday morning that the U.S. Food and Drug Administration (FDA) approved tirzepatide for chronic weight loss management. Lilly already markets the drug under the brand name Mounjaro as a treatment for type 2 diabetes. It plans to use the brand name Zepbound for the weight loss indication.
Many investors could be scratching their heads about Lilly's share price moving lower instead of higher on Zepbound's FDA approval. What's going on? I suspect we're simply seeing the old adage "buy the rumor, sell the news" at work.
Source Fool.com
