Eli Lilly Stock Gains on Approval of Weight-Loss Pill

By Kelly Cloonan

Shares of Eli Lilly rose after the company's once-daily pill for weight loss got approval from U.S. drug regulators.

The stock gained 4.8% to $963.89 Wednesday. Shares have climbed about 20% over the past year.

The approval stirs up further competition with rival Novo Nordisk, which has been selling a pill version of its Wegovy since the start of this year in one of the most successful drug launches ever.

Analysts expect Lilly's pill, named Foundayo, to generate about $21 billion in global sales by 2030, compared with $4 billion for the Wegovy pill, according to pharmaceutical commercial intelligence firm Evaluate.

Lilly has previously overtaken Novo Nordisk in the fight for dominance in the weight-loss drug market. Its Zepbound and Mounjaro injections now outsell the GLP-1 drugs that Novo Nordisk pioneered with its Wegovy and Ozempic weekly injections. This time around, Novo Nordisk is looking to emphasize the effectiveness of its pill in an effort to keep its lead.

Write to Kelly Cloonan at [e-mail]

(END) Dow Jones Newswires

04-01-26 1232ET