Eli Lilly Hits the Jackpot with New Drug, Tirzepatide, Targeting NASH Market
Developing brand-new drugs is a long and expensive process that doesn’t always deliver a positive return on investment. However, Eli Lilly (NYSE: LLY) seems to have struck gold with its latest medicine, tirzepatide. Marketed as Mounjaro in the diabetes market and as Zepbound for weight loss, analysts predict that tirzepatide could reach peak sales of $25 billion.
One exciting market that Eli Lilly is targeting with tirzepatide is the non-alcoholic steatohepatitis (NASH) field. NASH is a liver disease caused by a buildup of fat in the liver, leading to fibrosis. With diabetes and obesity being major risk factors for NASH, there is a significant unmet need for effective treatments in this area.
Eli Lilly hopes that tirzepatide will eventually earn approval to treat NASH, as the medicine has shown promising results in phase 2 studies. The drug achieved its primary endpoint of NASH resolution without worsening fibrosis in a trial with 157 participants.
While the NASH market is expected to grow exponentially, Eli Lilly faces competition from other drugmakers like Novo Nordisk and Pfizer. Despite the competition, tirzepatide has the potential to be a leader in this market.
In addition to targeting NASH, tirzepatide is also being developed to treat other conditions such as obstructive sleep apnea. The drug has already shown success in its existing indications, with Mounjaro generating over $5 billion in sales last year.
Overall, Eli Lilly’s revenue and earnings are expected to grow at a rate much higher than the average pharmaceutical giant. Analysts believe that the company’s earnings per share will increase by almost 63% annually.
With a solid dividend stock and a promising pipeline of medicines, Eli Lilly seems to be a strong investment opportunity. While tirzepatide’s potential in the NASH market is a bonus, the drugmaker has many other reasons to attract investors.
In conclusion, Eli Lilly’s tirzepatide is making waves in the pharmaceutical industry, and the company’s stock is definitely worth considering for investment.
