Eli Lilly’s weight loss drug tirzepatide has received approval from Chinese regulators, intensifying competition with Novo Nordisk.
Eli Lilly and Company (NYSE: LLY) announced today that its weight loss drug tirzepatide has received approval from Chinese regulators.
This development marks a significant expansion for the pharmaceutical giant in the world’s second-largest economy, which is estimated to have the highest number of overweight or obese people globally. The approval intensifies competition with Novo Nordisk (NYSE: NVO) in the Chinese market following the June 2024 approval of Novo’s weight loss drug Wegovy.
Eli Lilly Gains Regulatory Approval in China for Weight Loss Drug
Tirzepatide, the active ingredient in Eli Lilly’s diabetes drug Mounjaro and weight-loss drug Zepbound, has gained regulatory approval in China.
The company made the announcement via social media, though no immediate details were provided regarding the commencement of sales or supply amounts. This approval adds to tirzepatide’s growing global presence, with previous approvals in the United States, European Union, Canada, Australia, and the United Kingdom for various indications, including type 2 diabetes treatment and weight loss management.
LLY Stock Sees Slight Gains in Premarket Trading on the News
Following the news, Eli Lilly’s stock (LLY) showed positive movement in pre-market trading. As of 8:00 AM EDT, the stock was trading at $867.98, up 2.25% from its previous close of $848.90. The company’s market capitalization stands at $764.35 billion, reflecting investor confidence in its growth prospects.
Eli Lilly has demonstrated strong financial performance, outperforming the S&P 500 index. The stock has recorded a year-to-date return of 46.13%, a one-year return of 91.27%, and a five-year return of 752.79%.
Key financial metrics include a trailing P/E ratio of 125.02, an EPS of $6.79, and a profit margin of 17.08%. The company reported a trailing twelve-month revenue of $35.93 billion and a net income available to common shareholders of $6.14 billion.
As Eli Lilly continues to expand its global footprint in the weight loss drug market, investors and industry observers will closely watch the company’s performance in the competitive Chinese market. The approval of tirzepatide in China represents a significant milestone for Eli Lilly.
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Originally Posted July 19, 2024 – Eli Lilly Enters the Chinese Market as Tirzepatide Gains Approval, Shares Gain
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