A sign bearing the company logo is seen outside Eli Lilly's headquarters in Indianapolis, Indiana, March 17, 2024.
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Earlier this month, Berkshire Hathaway It has reached a market cap of $1 trillion, the first non-tech company in the United States to reach that mark. Soon, the pharmaceutical giant will take over. Eli Lilly It could become the first healthcare company to join the club.
Why? Eli Lilly is benefiting from growing demand for its injectable weight-loss drug Zebound and its diabetes drug Mounjaro, drugs that mimic hormones produced by the gut to suppress appetite and regulate blood sugar. Mounjaro and Zebound now account for nearly 40% of Eli Lilly’s total sales, according to second-quarter results in August.
The company is one of two dominant players in the weight-loss drug market, which some analysts believe could be worth $150 billion by the end of the decade. Eli Lilly may also overtake its main competitor, Novo NordiskIt also shows progress towards expanding its drug supply.
Novo Nordisk is also investing billions of dollars to boost manufacturing. But its weight-loss and diabetes drugs, Wegovy and Ozempic, missed sales expectations in the second quarter in part because of pricing pressures in the United States.
Investors are also optimistic about other potential health benefits of Eli Lilly’s treatments, which could boost its long-term revenue potential. The company has released several study results over the past year that show promise for Zebound as a treatment for obesity-related conditions such as obstructive sleep apnea, fatty liver disease and cardiovascular disease.
Eli Lilly's shares have risen more than 60% this year, giving it a market value of about $900 billion.
The company could soon hit the trillion-dollar mark. Eli Lilly shares rose about 10% on Aug. 8 after second-quarter results beat Wall Street expectations. The drugmaker could post another impressive quarter on Oct. 30.
The stock could also get a boost from potential data and regulatory approvals. Eli Lilly, for example, expects the Food and Drug Administration to decide whether to approve its sleep apnea drug Zebound by the end of the year.
Eli Lilly is likely to release data from a late-stage trial that pits Zepbound directly against Novo Nordisk’s wegovy by the end of the year, according to a note by Leerink Partners analyst David Reisinger on Aug. 20.
Feel free to send any tips, suggestions, story ideas or data to Annika at annikakim.constantino@nbcuni.com.
The Latest in Healthcare Technology: Another Continuous Glucose Monitoring Device Hits the Market
Stacey Wescott | Chicago Tribune | Tribune News Service | Getty Images
It's raining glucose monitors all the time!
Abbott Laboratories Lingo, a leading blood glucose monitoring company, announced Thursday the availability of the first non-prescription continuous glucose monitor in the United States, just days after competitor Dexcom launched a similar product.
Continuous glucose monitors are small sensors inserted through the skin to measure glucose levels in real time. These devices have traditionally been prescribed for people with diabetes because they can help alert these users to emergencies. Lingo is more consumer-friendly, as it is intended for adults who do not take insulin.
Glucose is a sugar molecule that comes from food and is the body's main source of energy. Everyone's glucose levels fluctuate, but consistently high levels can lead to more serious conditions like heart disease, insulin resistance and metabolic disease, Abbott says.
Lingo is designed to help users understand how their bodies respond to food, exercise, sleep, and stress, as well as how to manage their glucose levels in healthier ways.
The Lingo device was approved by the FDA in June. It is available without a prescription, and users can buy one sensor online for $49, two sensors for $89, or six sensors for $249.
Dexcom’s new non-prescription continuous glucose monitor is called Stelo, and the FDA approved it in March. An ongoing subscription to Stelo costs $89 a month, and users can also purchase a monthly supply for $99 at a time.
I tried Stelo before it launched, and you can read my experience here. I haven’t tried Lingo yet, but Abbott explained to me how to use the app and how it works.
One feature that caught my eye was Abbott’s Lingo Count, a meter designed to help users understand glucose spikes. This happens when the amount of sugar in the bloodstream rises rapidly and then drops, usually after eating.
The Lingo Count algorithm assigns a numerical value to each glucose spike, which is supposed to represent how much impact that fluctuation has. Users have an overall Lingo Count goal they want to stay below each day, and can see their progress over time.
In order to learn how to manage high glucose levels, Lingo users can participate in challenges and access educational materials within the app. I think challenges can be a fun way to engage people in managing their glucose levels, and I’m interested in trying it out myself.
Overall, I think the app feels intuitive and useful. The data is presented in a way that doesn't feel overly complicated or overwhelming, and consumers have the option to dig deeper if they want.
I'm planning to test Lingo later this month, so I'll have more to share soon!
Feel free to send any tips, suggestions, story ideas or data to Ashley at ashley.capoot@nbcuni.com.
