The company had very encouraging news to report about its hottest product.
The U.S. pharmaceutical stock of the moment, Eli Lilly (LLY 3.06%), did rather well on Tuesday. Its price closed the day more than 3% higher, on the back of some good news from the lab about its hottest product. What also helped was a glowing new research note from an analyst. The stock’s performance looked even better when matched against that of the S&P 500 index, which dipped by 0.2%.
Zepbound for glory
That hot product is obesity treatment Zepbound, Eli Lilly’s entry in the white-hot weight loss drugs market. The pharmaceutical giant announced that in a clinical trial, the molecule significantly cut the risk of vulnerable individuals developing type 2 diabetes by 94%. Those individuals were either in a pre-diabetes stage, or were obese or overweight.
Zepbound also did well as a weight loss treatment. Patients dosed with the drug experienced a nearly 23% average decrease in body weight. That compared very favorably with an average of 2% for patients taking a placebo.
Both Eli Lilly and Danish pharmaceutical company Novo Nordisk are investigating their respective weight loss treatments for other medical uses. Novo Nordisk is the company behind the immensely popular Wegovy.
Wells Fargo’s new top pharma pick
Separately, Wells Fargo flagged Eli Lilly as its new No. 1 pick among large-cap pharmaceutical stocks on the U.S. market. In a new research note, the bank’s analysts said that the company has a strong pipeline, and is poised for encouraging growth. The Wells Fargo team said an improving supply chain and rising international sales make it a very attractive investment.
Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.