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Eli Lilly (LLY) stock price movement has experienced a whirlwind since Wednesday’s approval of its diabetes medication, tirzepatide, for chronic weight management in the United States and the United Kingdom.
The stock, took a dive on Thursday to close at $591.49 after enjoying a surge on Wednesday especially following the approval by the US FDA. On Friday, it traded in a day range of $586.00 to $596.67, displaying heightened interest in response to the expanding scope of tirzepatide beyond its initial indication for Type 2 diabetes treatment.
EMA greenlights Tirzepatide for obesity treatment
In a significant development today, the European Medicines Agency (EMA) announced that its expert panel recommended marketing approval for tirzepatide’s use in obesity treatment. This endorsement follows closely on the heels of the US and UK approvals, marking a crucial step in Eli Lilly’s global market strategy.
Known as Mounjaro in the EU since 2022 for Type 2 diabetes, tirzepatide’s newfound indication reflects a growing trend in pharmaceuticals addressing both diabetes and obesity.
EMA approval fuels bullish momentum in Eli Lilly stock
Following the EMA’s favourable recommendation, Eli Lilly’s stock rose to a high of $596.67 before settling at $591.60 at press time, which was a 0.047% increase from yesterday’s close. The stock is buoyed by the positive regulatory news.
The market cap, standing at an impressive $561.42 billion USD, underscores investor confidence in the potential of tirzepatide’s dual use. With an average volume of 3.57 million, Eli Lilly’s stock demonstrates robust liquidity, and the relatively high P/E ratio of 106.99 suggests a favorable market perception despite the drug’s monthly cost of around $1,060.
The triple tirzepatide regulatory approvals signify a pivotal moment for the company, positioning tirzepatide as a versatile pharmaceutical option for individuals dealing with both Type 2 diabetes and obesity and it will likely shape the path for the LLY stock moving ahead.
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