Eli Lilly launched a direct-to-consumer website Thursday, as the company stepped up its marketing efforts for weight-loss drugs. Eli Lilly stock initially rose and then sank at the close.
The company's LillyDirect will connect U.S. patients living with migraine, diabetes or obesity with independent doctors and support, and deliver some Lilly medicines through third-party pharmacies to a patient's home.
"A complex U.S. health care system adds to the burdens patients face when managing a chronic disease," Chief Executive David Ricks said in a statement. "With LillyDirect, our goal is to relieve some of those burdens by simplifying the patient experience to help improve outcomes."
Eli Lilly stock closed the regular session with a fractional loss at 614.50, below a buy point at 629.97 out of a flat base, according to MarketSmith.com.
Eli Lilly Stock: Focus Deepens On Weight-Loss Drugs
LillyDirect will focus on three big business areas in the U.S.: migraine, diabetes and weight-loss drugs.
Eli Lilly stock investors are closely watching new efforts in the last space. Last year, Eli Lilly gained Food and Drug Administration approval for Zepbound, an obesity treatment. Sales are expected to ramp quickly and give Novo Nordisk's leading medication, Wegovy, a run for its money. In 2024, Zepbound is expected to bring in $3.79 billion in sales. By 2028, Eli Lilly stock analysts project $11.37 billion in sales.
The company is also a massive player in diabetes drugs with Trulicity and Mounjaro. The latter uses the same chemical compound as Zepbound and tirzepatide. From 2024 to 2028, sales of Mounjaro are expected to go through the roof, climbing from $8.44 billion to $19.63 billion, according to Eli Lilly stock analysts polled by FactSet.
In order to hit those sales projections, Eli Lilly will have to beat out a slew of vendors selling knockoff versions of its two new hit drugs. Last year, Lilly sued a handful of pharmacies and spas claiming to be selling compounded versions of Mounjaro. The FDA has also issued a warning, saying these drugs have not been inspected or approved by the agency.
LillyDirect could help in this pursuit by easing access to the FDA-approved versions of the diabetes and weight-loss drugs.
Eli Lilly stock is on the rise this year, ticking above its 50-day moving average on Jan. 2 and climbing on Jan. 3. Shares have a strong Relative Strength Rating of 93, according to IBD Digital. This puts them in the top 7% of all stocks when it comes to 12-month performance.
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