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The GLP-1 phenomenon is truly on the role, particularly in the US. Now, Eli Lilly and Company has moved one step closer to realizing the $100 billion annual sales potential for GLP-1 drugs by winning a key FDA approval.

Eli Lilly and Company's Mounjaro (Tirzepatide) injections treat type-2 diabetes as well as obesity by targeting two hormones – Glucagon-Like Peptide-1 (GLP-1) and Glucose-dependent Insulinotropic Polypeptide (GIP) – to control blood sugar levels.

Retatutide, another offering by Eli Lilly and Company, is currently undergoing clinical trialsand supposedly offers superior results by targeting three different hunger-regulating hormones: GLP-1, GIP, and Glucagon. As per the results of Retatutide’s phase two trials, the drug can lead to an average loss of24.2 percentof body weight in adult patients after 48 weeks of the treatment, when injections are administered once every week.

Eli Lilly and Company Has Priced Zepbound at $1,060 Per Six Doses

ELI LILLY’S $LLY DIABETES DRUG APPROVED FOR WEIGHT LOSS BY FDA

LILLY: ZEPBOUND TO BE AVAILABLE IN 6 DOSES AT PRICE $1,059.87, EXPECTED TO BE AVAILABLE IN US END OF YEAR

— Evan (@StockMKTNewz) November 8, 2023

This brings us to the crux of the matter. As per the company's press release, the US FDA has now approved Eli Lilly and Company's Tirzepatide drug under the Zepbound label for "chronic weight management." The statement goes on to note:

"Zepbound is indicated for adults with obesity (with a BMI of 30 kg/m2 or greater), or those who are overweight (with a BMI of 27 kg/m2 or greater) and also have weight-related medical problems such as hypertension, dyslipidemia, type 2 diabetes mellitus, obstructive sleep apnea or cardiovascular disease, to lose weight and keep it off."

The treatment leverages both GLP-1 and GIP hormone receptors to regulate hunger. As per Zepbound's clinical trials, patients that took the treatment in conjunction with diet control and exercise lost an average of 48 pounds within 72 weeks at the highest recommended weekly dosage.

The drug manufacturer goes on to note:

"Zepbound is expected to be available in the U.S. by the end of the year in six doses (2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, 15 mg) at a list price of $1,059.87, which is approximately 20% lower than semaglutide 2.4 mg injection for weight loss."

JP Morgan recently estimated that the annual sales of GLP-1 drugs in the US would reach around$100 billion by 2030, with Eli Lilly and Company and Novo Nordisk holding a market share of around 80 percent by the end of this decade. Around 7 percent of the total population in the US is expected to be regularly using these drugs in the next 10 years, with the per capita caloric consumption of such users falling by around 20 percent.

Under the FDA's decision, $LLY can now promote the drug. Shares rose 1.5%, $NVO was down 1.3%.

— notreload (@thudderwicks) November 8, 2023

Eli Lilly and Company shares are up around 2 percent at the time of writing.