ELLY obesity drug success and potential

What happened: Eli Lilly and Company (LLY) secured full coverage for its obesity drugs, Foundazo and Zepbound, by the nation's three largest pharmacy benefit managers (PBMs) as of May 28. This decision expands access to millions of Americans, potentially boosting LLY's sales. Additionally, CVS Caremark, a major PBM, announced it would cover LLY's weight loss medicines, further driving LLY's growth prospects.

Market impact: The obesity drug market is poised for growth, with LLY at the forefront. The expanded coverage of LLY's drugs by major PBMs is expected to drive sales and revenue growth for the company. This narrative has bullish implications for LLY stock, with some analysts predicting LLY could outperform SpaceX in market capitalization within two years.

What to watch next: LLY's Q2 2023 earnings report on July 27 will provide an update on the sales performance of its obesity drugs following the expanded coverage. Additionally, the FDA's decision on LLY's next-generation obesity drug, Tirzepatide, expected in the first half of 2023, will provide further clarity on LLY's obesity drug pipeline and potential market dominance.