A sign with the company’s logo outside Eli Lilly’s headquarters on March 17, 2024 in Indianapolis, Indiana.
Scott Olson | Getty Images
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At the beginning of this month, Berkshire Hathaway The market value exceeded US$1 trillion, becoming the first non-tech company in the United States to exceed US$1 trillion in market value. Soon, pharmaceutical giants Eli Lilly and Company could be the first healthcare company to join the club.
Why? Demand has been soaring for Eli Lilly’s injectable weight-loss drug Zepbound and diabetes drug Mounjaro, both of which are incretin drugs that mimic hormones produced in the gut to suppress appetite and regulate blood sugar. Revenue from Mounjaro and Zepbound now account for nearly 40% of Lilly’s total sales, according to the company’s second-quarter results in August.
The company is one of two dominant players in the weight-loss drug market, which some analysts believe could be worth $150 billion by the end of the decade. Eli Lilly could also lead its primary business competitors, Novo Nordiskas it shows progress in expanding access to medicines.
Novo Nordisk has also invested billions of dollars to boost manufacturing. But second-quarter sales of its own weight-loss and diabetes drugs Wegovy and Ozempic fell short of expectations, in part due to pricing pressure in the U.S.
Investors are also encouraged by the potential for other health benefits from Eli Lilly’s treatment, which could boost their long-term earnings potential. Zepbound is expected to treat obesity-related conditions such as obstructive sleep apnea, fatty liver disease and cardiovascular disease, according to results from multiple studies released by the company last year.
Eli Lilly’s stock price has soared more than 60% this year, giving it a market value of nearly $900 billion.
The company may soon hit the $1 trillion mark. Eli Lilly’s stock price soared nearly 10% on August 8 after its second-quarter results exceeded Wall Street expectations. The drugmaker is likely to report another blowout quarter on Oct. 30.
Potential data and regulatory approvals could also drive shares higher. For example, Eli Lilly expects the U.S. Food and Drug Administration to decide whether to approve Zepbound to treat sleep apnea by the end of the year.
Eli Lilly may release data from a late-stage trial that directly compares Zepbound to Novo Nordisk’s Wegovy before the end of the year, according to an Aug. 20 report from Leerink Partners analyst David Risinger.
Please feel free to send Annika any tips, suggestions, story ideas and data: annikakim.constantino@nbcuni.com.
The latest in healthcare technology: Another continuous glucose monitor hits the market
Stacey Westcott | Chicago Tribune | Tribune News Service | Getty Images
It’s raining on continuous glucose monitors!
Abbott Laboratories On Thursday it announced the U.S. launch of its first over-the-counter continuous glucose monitor, Lingo, just days after rival Dexcom launched a similar product.
A continuous glucose monitor is a small sensor that pierces the skin to measure immediate blood glucose levels. Traditionally, these devices have been prescribed for diabetics because they can help alert the user to emergencies. Lingo is more consumer-friendly because it’s suitable for adults who don’t take insulin.
Glucose is a sugar molecule that comes from food and is the body’s main source of energy. Everyone’s blood sugar levels fluctuate, but consistently elevated levels can lead to more serious conditions, such as heart disease, insulin resistance and metabolic disease, Abbott said.
Lingo is designed to help users understand how their bodies respond to food, exercise, sleep and stress, and how to manage blood sugar levels in a healthier way.
The U.S. Food and Drug Administration approved Lingo in June. It is available without a prescription and can be purchased online for $49 for one sensor, two for $89, or six for $249.
Dexcom’s new over-the-counter continuous glucose monitor is called Stelo and received FDA approval in March. An ongoing subscription to Stelo costs $89 per month, and users can purchase one month of service at a time for $99.
I tested Stelo before it was released and you can read about my experience here. I haven’t tried Lingo yet, but Abbott introduced me to the app and how it works.
One feature that stood out to me was Abbott’s “Lingo Count,” a metric designed to help users understand blood sugar spikes. This occurs when the amount of sugar in the blood increases quickly and then decreases (usually after eating).
The Lingo Count algorithm assigns a numerical value to each glucose spike, which is supposed to represent how significant the fluctuation was. Users have a total target Lingo count that they want to stay below every day, and over time they can see their progress.
To learn how to manage blood sugar spikes, Lingo users can participate in challenges and access in-app educational materials. I think these challenges could serve as a fun way to get people to pay attention to their blood sugar, and I’d be interested in trying them myself.
Overall, I think the app looks intuitive and helpful. The data is presented in a way that doesn’t feel overly complex or overwhelming, giving consumers the option to drill down deeper if they wish.
I plan on testing Lingo later this month, so I’ll have more to share soon!
Please feel free to send any tips, suggestions, story ideas and data to Ashley at ashley.capoot@nbcuni.com.
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