Eli Lilly Shares Slide on Disappointing Drug Trial
7 minutes ago
Ely Lilly (LLY) shares sank Thursday after the pharmaceutical firm reported disappointing results from a late-stage study of its experimental obesity pill. The news offset Lilly’s strong quarterly results.
The stock was down 14% recently, trading at its lowest level since early last year.
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The company said in a Phase 3 trial, patients taking a 36 milligram dose of its oral GLP-1 drug, orforglipron, without food and water restrictions showed an average weight loss of 12.4%, or 27.3 pounds, in a 72-week period. That’s below the 15% average weight loss of rival Novo Nordisk’s (NVO) Wegovy injectable treatment. Some on Wall Street were looking for orforglipron to come in closer to that level.
In an interview with CNBC, Lilly CEO David Ricks argued that the company wasn’t disappointed with the results even though they were “one or two points below what (the) Street had.” Ricks added the goal was to create a pill that was convenient to take, could be made on a huge scale, and would provide weight loss that was competitive with other GLP-1 medicines, “and that’s what we’ve achieved.”
The company said it plans to seek regulatory approval of orforglipron by the end of the year.
Along with the orforglipron announcement, Lilly released its second-quarter financial data Thursday, reporting adjusted earnings per share of $6.31, with revenue up 38% year-over-year to $15.56 billion. Both exceeded Visible Alpha forecasts by a wide margin.
The gains came from soaring demand for its current weight-loss drug, Zepbound, which had a 172% jump in sales to $3.38 billion. Sales of another GLP-1, Mounjaro, used to treat both obesity and Type-2 diabetes, were up 68% to $5.20 billion.
Lilly raised its full-year adjusted EPS range to $21.75 to $23.00, compared to the earlier estimate of $20.78 to $22.28. It sees revenue of $60 billion to $62. billion, versus the previous outlook of $58 billion to $61 billion.
Intel Shares Slip as Trump Calls for CEO to Step Down
1 hr 3 min ago
Intel (INTC) shares fell in early trading Thursday after President Donald Trump called for new CEO Lip-Bu Tan’s resignation.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote on his Truth Social network. “There is no other solution to this problem.”
Earlier this week, Sen. Tom Cotton (R-Ark.) sent a letter to Intel Chairman Frank Yeary in which he wrote that “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”
Andrej Sokolow / Picture Alliance / Getty Images
Tan formerly was CEO at Cadence Design Systems (CDNS), which recently pleaded guilty in a criminal case involving sales to China during his tenure.
Tan assumed the CEO role at the struggling chipmaker in March. Late last month, it was reported that Intel was looking to spin off its networking unit as it moves to shed assets under Tan.
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Intel shares were down about 2% in recent trading. The stock price is near unchanged in 2025, after shedding 60% of its value last year.
Major Index Futures Poised to Open Higher
1 hr 59 min ago
Futures linked to the Dow Jones Industrial Average were up 0.4%.
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S&P 500 futures rose 0.6%.
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Nasdaq 100 futures added 0.8%.
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