FOMO Alert: Eli Lilly Shares Rip As New Study Shows Drug Preventing Diabetes By 94%...

First we had steroids, then we had SARMs (Selective Androgen Receptor Modulators), and now in 2024, Big Pharma has blessed us with peptides. As we all know, these bad boys have caused a sh^t storm frenzy for those looking to fit back into their glory day jeans of the past. Think, Ozempic. 

(Source: Reddit) 

However, while some have questioned the longevity of these powerful body transformers, including whether they are safe or not… 

It looks like Eli Lilly has just put all of the loud mouth critics to rest as they just released some massive findings from a three-year study on the ingredient Tirzepatide (found in Lilly’s popular Mounjaro and Zepbound drugs). 

(Source: CNBC) 

In short, according to CNBC, Lilly has officially won bigly as their popular weight loss and diabetes drugs reduced the risk of developing those Type 2 diabete bastards by 94% in obese and overweight adults with prediabetes. 

“Ladies and gentlemen, we got ‘em” 

(Source: Tenor) 

Of course this is absolutely profound considering that more than 1 in 3 Americans have prediabetes, according to the latest government data (legit has me wanting to prick my finger now) - but since the news broke, Wall Street has been eating it up as Eli Lilly’s stock has roared to a peak of +3.63% on the day. 

(Source: IBD) 

Which for a blue chip sitting in the high $900 trading levels, is massive, and only adds more momentum to their current +60.21% YTD gains. Novo Nordisk on the other hand, (aka Eli Lilly's Joker to their Batman), dipped -0.36% on the announcement. 

(Source: Finimize) 

So with that said, what did this study look like? Well, for starters, this was the longest Tirzepatide trial yet, spanning over three years and involving more than 1,000 adults. So a pretty good sample size to say the least. 

However, while the 94% prevention of developing diabetes was the flagship stat of the study, participants on the highest dose lost an average of 22.9% body weight - while the placebo group barely moved the needle with a 2.1% loss. Which basically has everyone in Oklahoma being like: “Well butter my butt and call me a biscuit! Honey, holler at that doctor will ya?” (P.S. I’m an Okie so I can say that).

AI’s version of Oklahoma (Source: Facebook) 

What’s even more interesting about Eli Lilly’s findings is that even when participants stopped the drug for 17 weeks, they still had an 88% lower risk of diabetes. So clearly, this is not only huge for Eli Lilly, but it’s game changing for the millions of Americans skating on the thin ice of prediabetes. 

(Source: Reuters) 

Now with that said, for investors, this news is somewhat of a jackpot finding. Why? Well the potential for these drugs to further penetrate the market (giving a middle finger to one of the biggest health threats out there) combined with the list price of around $1,000 screams seismic revenue in the making. 

(Source: Giphy) 

Of course, Eli Lilly will have to secure broader insurance coverage, but the potential for continued growth is second to none. On the other hand though, even with the impressive results, critics are still managing to crawl from the woodworks on this.

For instance, Dr. Eric Topol, founder and director of Scripps Research, pointed out that while a 94% reduction sounds phenomenal, the absence of specific numerical data on diabetes progression leaves room for doubt. Translation: It’s like claiming your grandma’s pie is the best in the world without winning a single bake-off. 

However, even with the critics, this won’t stop the demand for GLP-1 drugs (products with Tirzepetide in them) from skyrocketing. The only real issue is the supply chain and the fact that the current cost doesn’t necessarily make it accessible for low-income patients. 

But for now, while Eli Lilly figures that stuff out (technically the easy part in this scenario), this is no doubt a blockbuster result for the company. For investors though, while the bandwagon is growing full, don’t be dumb and become a victim of FOMO. 

(Source: Giphy) 

Do your due diligence and make sure that Eli Lilly’s stock is right for you. The side effects of FOMO can cause pain, regretting life choices, and terrible future decision making. But hey, that’s why you have Stocks.News right? To keep your mind clear, informed, and up to date on the market's most explosive stories. 

So with that put Eli Lilly up on your watchlist, and keep on cashin’ checks and breaking necks’ friends! Until next time…