Obesity rates in the United States have climbed steadily since the 1970s. The share of obese adults has climbed from between 10% and 15% in the mid-1970s to between 35% and 40% in the present day. Drugs that purport to achieve weight loss have always drawn attention, but their success has widely varied.
Over the past decade, we have seen the introduction of some of the most successful weight loss drugs in history. Ozempic, manufactured and marketed to treat diabetes by Novo Nordisk, was soon found to have dramatic weight loss side effects. Ozempic has been embraced by many who now use it solely as a weight loss drug.
Eli Lilly (NYSE:LLY) is an Indianapolis-based company that discovers, develops, and markets human pharmaceuticals to a worldwide client base. Shares of this health care stock have climbed 5.3% month-over-month as of close on Friday, September 15. Meanwhile, the stock has increased 57% so far in 2023.
This company released its second quarter (Q2) fiscal 2023 earnings on August 8. Eli Lilly delivered revenue growth of 28% to $8.31 billion in Q2 2023. Moreover, net income was reported at $1.76 billion or $1.95 earnings per share (EPS) up 85% and 86%, respectively, compared to the previous year. The strong quarter inspired Eli Lilly to raise its EPS guidance for the full year.
Shares of this health care stock are trading in solid territory at the time of this writing. Investors should be eager to get in on the weight loss drug market, and Eli Lilly is perfectly positioned to capitalize with the progress it has seen with SURMOUNT. The drug is close to the finish line in clinical trials, which means investors can look forward to it hitting the market in the not-too-distant future.