A sign with the company logo outside the headquarters of Eli Lilly and Company in Indianapolis, Indiana, March 17, 2024.
Scott Olson |
A version of this article first appeared in CNBC's Healthy Returns newsletter, which brings the latest health care news straight to your inbox. Subscribe here to receive future editions.
Beginning of the month Berkshire-Hathaway exceeded the market capitalization of $1 trillion, becoming the first non-tech company in the US to do so. Soon after Eli Lilly could be the first healthcare company to join this club.
Why? Eli Lilly is benefiting from rising demand for its injectable weight-loss drug Zepbound and diabetes drug Mounjaro, both incretin drugs that mimic hormones produced in the gut to curb appetite and regulate blood sugar. Sales of Mounjaro and Zepbound now account for nearly 40 percent of Eli Lilly's total sales, according to second-quarter results in August.
The company is one of the two dominant players in the weight-loss drug market, which some analysts say could be worth $150 billion by the end of the decade. Eli Lilly could also overtake its main investor. Rival, Novo Nordiskas it shows progress in expanding the supply of its medicines.
Novo Nordisk is also investing billions to boost production, but its own weight-loss and diabetes drugs Wegovy and Ozempic missed second-quarter sales expectations, partly due to price pressure in the US.
Investors are also encouraged by the other potential health benefits of Eli Lilly's treatments, which could boost their long-term sales potential. The company has released several study results over the past year demonstrating Zepbound's potential as a treatment for obesity-related conditions such as obstructive sleep apnea, fatty liver disease and cardiovascular disease.
Eli Lily shares have risen over 60% this year, bringing the company's market value to nearly $900 billion.
And the company could soon reach that trillion-dollar mark. Eli Lilly shares rose nearly 10% on August 8 after second-quarter results beat Wall Street expectations. The pharmaceutical giant could post another record quarter on October 30.
Potential data and regulatory approvals could also boost the stock price. Eli Lilly, for example, expects the Food and Drug Administration to make a decision by the end of the year on whether to approve Zepbound for sleep apnea.
According to an August 20 note from Leerink Partners analyst David Risinger, Eli Lilly may release data by year's end from a late-stage trial pitting Zepbound directly against Novo Nordisk's Wegovy.
Feel free to send tips, suggestions, story ideas and data to Annika at annikakim.constantino@nbcuni.com.
Latest technology in healthcare: Another continuous glucose monitor hits the market
Stacey Wescott | Chicago Tribune | Tribune News Service | Getty Images
It's raining continuous glucose monitors!
Abbott Laboratories announced Thursday that its first over-the-counter continuous glucose monitor, Lingo, is available in the U.S., just days after its competitor Dexcom launched a similar product.
Continuous glucose monitors are small sensors that are punctured through the skin to measure glucose levels in real time. The devices are traditionally prescribed to diabetes patients because they can alert these users to emergencies. Lingo is more consumer-friendly because 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 persistently elevated levels can lead to more serious conditions such as heart disease, insulin resistance and metabolic diseases, Abbott said.
Lingo is designed to help users learn how their body responds to food, exercise, sleep and stress and how they can manage their glucose levels in healthier ways.
The U.S. Food and Drug Administration approved Lingo in June. It is available over the counter and users can purchase one sensor for $49, two sensors for $89 or six sensors for $249 online.
Dexcom's new over-the-counter continuous glucose monitor is called Stelo, and it was approved by the FDA in March. An ongoing Stelo subscription costs $89 per month, and users can also purchase a month's supply at once for $99.
I tested Stelo before it was launched and you can read about my experience here. I haven't tried Lingo yet, but Abbott explained the app and how it works to me.
One feature that particularly caught my eye is Abbott's “Lingo Count,” a measurement feature designed to help users understand glucose spikes, which occur when the amount of sugar in the bloodstream quickly rises and then falls again, often after eating.
The Lingo Count algorithm assigns a numerical value to each glucose spike to represent how big an impact that fluctuation is. Users have an overall Lingo Count target that they want to stay below each day and can track their progress over time.
To learn how to manage glucose spikes, Lingo users can participate in challenges and access learning materials in the app. I think the challenges could be a fun way to make people more aware of their glucose levels and I'm interested in trying them out myself.
Overall, I found the app intuitive and helpful. The data is presented in a way that doesn't seem too complex or overwhelming, and consumers have the option to drill down deeper if they need to.
I plan to test Lingo later this month, so I'll have more to share soon!
Feel free to send tips, suggestions, story ideas and data to Ashley at ashley.capoot@nbcuni.com.
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