{"id":709837,"date":"2026-06-02T06:36:32","date_gmt":"2026-06-02T06:36:32","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/709837\/"},"modified":"2026-06-02T06:36:32","modified_gmt":"2026-06-02T06:36:32","slug":"lillys-new-drug-just-delivered-the-largest-weight-loss-ever-seen-in-a-clinical-trial-heres-what-it-means-for-investors","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/709837\/","title":{"rendered":"Lilly&#8217;s New Drug Just Delivered the Largest Weight Loss Ever Seen in a Clinical Trial &#8212; Here&#8217;s What It Means for Investors"},"content":{"rendered":"<p>The big news in the GLP-1 weight loss drug space right now is the introduction of pills. That seems to have broadened the appeal of GLP-1s, as many consumers simply don&#8217;t like to take shots. Eli Lilly (<a href=\"https:\/\/www.fool.com\/quote\/nyse\/lly\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">LLY<\/a> 2.28%) just introduced its own pill, trailing slightly behind competitor Novo Nordisk (<a href=\"https:\/\/www.fool.com\/quote\/nyse\/nvo\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">NVO<\/a> 3.44%). But the long-term story for Eli Lilly is likely to be about its next-generation GLP-1 drug. Here&#8217;s why and what it means for investors. <\/p>\n<p>The big GLP-1 story<\/p>\n<p>Eli Lilly generates nearly 65% of its revenues from just two drugs, Mounjaro and Zepbound. These are both <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/glp-1-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">GLP-1 weight loss drugs<\/a> delivered by injection. It is an understatement to suggest that GLP-1 drugs are important to Eli Lilly&#8217;s business; they are integral. Which is why the company is competing so intensely with rival Novo Nordisk.<\/p>\n<p><img alt=\"A person in a kitchen taking supplements.\" loading=\"lazy\" width=\"880\" height=\"523\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/1780382191_185_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>The biggest financial story right now is that Novo Nordisk&#8217;s GLP-1 pill, launched at the start of 2026, appears to be more effective than Eli Lilly&#8217;s GLP-1 pill, introduced shortly afterward. Worse, Eli Lilly&#8217;s pill is a different medicine than its shots, while Novo Nordisk&#8217;s is the same. That suggests that the market acceptance of Eli Lilly&#8217;s GLP-1 pill could take longer, if it happens at all. <\/p>\n<p>Nothing to look at now, but maybe soon<\/p>\n<p>This is where Eli Lilly&#8217;s next-stage GLP-1 drug, Retatrutide, comes in. The drug is still in development, but early results indicate it could be more effective than any current GLP-1 option on the market. Some trial patients lost 30% or more of their weight, which is in the same range as that achieved with bariatric surgery. That could take GLP-1 drugs to the next level.<\/p>\n<p><img alt=\"Eli Lilly Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/1780382192_752_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-2.28%) $-25.20<\/p>\n<p>Current Price<\/p>\n<p>$1079.80<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$1.0T<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$1072.06 &#8211; $1105.21<\/p>\n<p>52wk Range<\/p>\n<p>$623.78 &#8211; $1149.10<\/p>\n<p>Volume<\/p>\n<p>114.5K<\/p>\n<p>Avg Vol<\/p>\n<p>3.1M<\/p>\n<p>Gross Margin<\/p>\n<p>82.83%<\/p>\n<p>Dividend Yield<\/p>\n<p>0.60%<\/p>\n<p>The only problem is that the drug is still being tested. So investors shouldn&#8217;t expect anything to come of this development today. And the impressive weight loss noted above isn&#8217;t universal. Only a subset of patients lost that much weight; many reduced their weight by a smaller percentage. That isn&#8217;t meant to suggest that the development is unimportant or that the drug isn&#8217;t effective. What Eli Lilly is doing with Retatrutide could be vital to the company&#8217;s future, and the results so far are quite good. But the headlines around Retatrutide may not capture the full picture of the research findings, instead focusing on what will most attract a reader&#8217;s attention. You will need to dig deeper if you want to really understand what is happening with this new drug&#8217;s development. <\/p>\n<p>However, for now, the big story is still <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/healthcare\/pharmaceutical-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">the pharmaceutical giant&#8217;s<\/a> hugely successful Mounjaro and Zepbound shots, and its new GLP-1 pill, which may face an uphill climb in the market. Still, the market tends to be forward-looking, so you should keep a close eye on the GLP-1 pipeline if you own Eli Lilly or are thinking of buying it.<\/p>\n<p>Eli Lilly is an expensive stock for a reason<\/p>\n<p>Eli Lilly&#8217;s price-to-earnings ratio is well off its five-year high of 57x, but it remains elevated at 37x. That compares to the pharma average of roughly 24x. That said, if the company&#8217;s new GLP-1 drug lives up to expectations and drives a new leg of growth, the current valuation could be more attractive than it seems.<\/p>\n","protected":false},"excerpt":{"rendered":"The big news in the GLP-1 weight loss drug space right now is the introduction of pills. That&hellip;\n","protected":false},"author":2,"featured_media":709838,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":["post-709837","post","type-post","status-publish","format-standard","has-post-thumbnail","category-healthcare","tag-au","tag-australia","tag-health","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/709837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=709837"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/709837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/709838"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=709837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=709837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=709837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}