Eli Lilly Defended by BofA Amid Weight Loss Pill Trial Data Disappointment

Friday, Aug 8, 2025 4:27 am ET1min read

Eli Lilly's shares fell after reporting Q2 results and announcing data from a late-stage trial of its under-development obesity pill. The highest dose of its daily obesity pill helped patients lose about 12% of their body weight, below analysts' expectations. BoFA defends Lilly, calling the selloff "way overdone," and notes it remains in pole position in obesity. Lilly reported Q2 EPS of $6.31 and revenue of $15.56B, both better than expected. The company raised its FY25 EPS and revenue views.

Eli Lilly reported Q2 earnings and announced data from a late-stage trial of its obesity pill, orforglipron. The highest dose of the daily pill helped patients lose about 12% of their body weight over 72 weeks, slightly below analysts' expectations. Despite this, the company remains optimistic about the pill's potential.

Eli Lilly's shares fell around 13% on Thursday, following the announcement. The company's CEO, David Ricks, stated that the results are "right on thesis" and that the pill's weight loss is "in the range" of what most people want to achieve. The pill is expected to be submitted to regulators by the end of the year, with a launch around the world planned for next year.

The trial results showed that more than 59% of patients lost at least 10% of their body weight, and 39% lost at least 15%. However, about 10.3% of patients on the highest dose discontinued treatment due to side effects, mainly gastrointestinal issues such as nausea and vomiting. The discontinuation rate was higher than some analysts expected and compared to existing GLP-1s on the market.

Despite the side effects, some doctors lauded the results, noting the potential of the pill to reach new patients who are hesitant to start or maintain injectable therapies. The pill could also help alleviate supply shortfalls of existing injections and make the treatment more accessible and affordable.

Eli Lilly's Q2 earnings report showed EPS of $6.31 and revenue of $15.56B, both better than expected. The company raised its FY25 EPS and revenue views. However, the market's reaction to the obesity pill trial results may impact the company's stock price in the coming weeks.

References:
[1] https://www.cnbc.com/2025/08/07/eli-lilly-obesity-pill-weight-los-trial.html

Eli Lilly Defended by BofA Amid Weight Loss Pill Trial Data Disappointment

Comments



Add a public comment...
No comments

No comments yet