LLY oral weight-loss drug launch

What happened: Eli Lilly (LLY) reported a 125% year-over-year growth in Mounjaro sales, with China reimbursement expanding its reach. LLY launched oral GLP-1 Foundayo, targeting needle-averse patients and cold-chain-limited markets. The company expects to launch this drug across Europe and Britain in late 2026 or early 2027.

Market impact: The oral weight-loss drug market is poised for growth, with LLY's Foundayo and Mounjaro leading the pack. This drives demand for GLP-1 biotech stocks, benefiting companies like Novo Nordisk (NVO) and pre-revenue Viking Therapeutics (VKTX). LLY's strong Q1 earnings and Foundayo launch pushed its stock price higher, while NVO, trading near 10x earnings and 45% below its 52-week high, presents an attractive entry point.

What to watch next: LLY's Q2 earnings report on July 27 will provide an update on Mounjaro and Foundayo sales. The FDA's decision on VKTX's Phase 3 trial for VK2735, expected in Q4 2023, will determine VKTX's future. Lastly, monitor NVO's earnings on August 9 for any updates on its oral semaglutide competition with LLY's Foundayo.