LLY - Mounjaro Is Targeting Another Multibillion-Dollar Market: Is Eli Lilly Stock a Buy?
2024-06-15 14:05:00 ET
Developing brand-new drugs is a long and expensive process that doesn't always deliver a positive return on investment. Occasionally, some pharmaceutical companies hit the jackpot and launch medicines worth all that trouble. That's what Eli Lilly (NYSE: LLY) has on its hands with tirzepatide, marketed as Mounjaro in the diabetes market and as Zepbound to help with weight loss. Analysts predict that tirzepatide's peak sales could reach $25 billion, but to get there, Eli Lilly will have to earn more indications for its new crown jewel.
One exciting market the drugmaker is targeting is the non-alcoholic steatohepatitis (NASH) field. Read on to find out what makes this area promising for Eli Lilly's tirzepatide and what it means for the stock.
NASH is a liver disease that, as its name suggests, is not due to heavy alcohol consumption. It is caused by a buildup of fat in the liver that leads to fibrosis (scarring). Diabetes and obesity are among the leading risk factors for NASH, which, in severe cases, can be deadly. Here's the thing: The prevalence of diabetes and obesity has increased substantially in recent decades. However, the market for therapies that treat NASH hasn't kept up.
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Mounjaro Is Targeting Another Multibillion-Dollar Market: Is Eli Lilly Stock a Buy?