Eli Lilly shares jump 14% on positive results for its 'Ozempic in a pill'

Investing.com -- Shares of Eli Lilly and Company (NYSE:LLY) surged over 14% Thursday following the announcement of positive Phase 3 trial results for orforglipron, a pioneering oral medication for type 2 diabetes. Some analysts are referring to the drug as "Ozempic in a pill."

The drug, which is the first oral small molecule GLP-1 receptor agonist to successfully complete a Phase 3 trial, demonstrated significant efficacy in improving glycemic control in adults with type 2 diabetes.

The company's optimism about the potential of orforglipron is based on the ACHIEVE-1 trial results, which showed the drug met its primary endpoint of superior A1C reduction compared to placebo at 40 weeks.

Analysts highlighted that the oral diabetes medication showed similar efficacy and safety compared to Novo Nordisk's (NYSE:NVO) weekly injectable of semaglutide, sending the Ozempic maker down 7.7% on the session.

Patients experienced an average A1C decrease of 1.3% to 1.6% from a baseline of 8.0%. Additionally, over 65% of participants on the highest dose achieved an A1C level of less than or equal to 6.5%, the threshold defined by the American Diabetes Association for diabetes management.

The study also revealed significant weight loss among participants, with an average loss of 16.0 lbs (7.9%) at the highest dose, suggesting that the full weight reduction potential had not yet been reached by the study's end.

These results position orforglipron as a promising new treatment option for individuals managing type 2 diabetes, with the added convenience of being a once-daily pill without food and water restrictions.

David A. Ricks, Lilly chair and CEO, said: "As a convenient once-daily pill, orforglipron may provide a new option and, if approved, could be readily manufactured and launched at scale for use by people around the world."

The ACHIEVE-1 trial is the first among seven Phase 3 studies evaluating the safety and efficacy of orforglipron in people with diabetes and obesity.

Commenting on the news, BofA Securities analyst Tim Anderson praised the results, saying Orforglipron (oral GLP-1) "delivers the goods."

"Arguably one of the biggest, most important, most closely-watched pipeline events in large cap biopharma has just played out," Anderson commented. "And it was favorable. It is LLY’s ACHIEVE-1 ph3 trial, with its oral GLP-1 – think “Ozempic in a pill” – the first of 7 such phase trials reading out in the current year with what is likely to become a best-in-class oral option for diabetes and weight loss control."

(Senad Karaahmetovic contributed to this report)

This article first appeared in Investing.com