Eli Lilly Stock Price (NYSE: LLY) Showing Consistent Gains As Sleep Apnea Treatment Nears

Eli Lilly's stock price (NYSE: LLY) has been on a consistent ascent over the past 12 months, with gains 98% impressively outperforming the markets. The 6 month of 54%, and the 1 month of 10% show a consistent trend in the stock taking out new ATH's with little pause for breath.

Operationally, the company has been at the forefront of developing new treatments for weight management, and recent developments with GLP-1 drugs Mounjaro and Zepbound, containing the active ingredient Tirzepatide, are creating a buzz in the healthcare industry.

In particular, Zepbound's potential to treat obstructive sleep apnea (OSA) has caught the attention of the medical community and investors alike.

OSA is a prevalent condition, with an estimated 80 million adults affected in the United States. Among them, over 20 million suffer from moderate-to-severe OSA, which poses a significant risk factor for other serious health complications, including hypertension, heart disease, stroke, and Type 2 diabetes. Eli Lilly's breakthrough comes at a crucial time, as the need for effective OSA treatments is growing.

Recent clinical results have shown that Tirzepatide injections can be a game-changer for those struggling with OSA. In the Phase 3 SURMOUNT-OSA clinical studies, adults with moderate-to-severe OSA and obesity observed substantial reductions in both apnea events and body weight when treated with Tirzepatide, compared to a placebo. The drug proved to be beneficial for users regardless of whether they were concurrently using Continuous Positive Airway Pressure (CPAP) therapy.

On the back of these promising results, Eli Lilly submitted an application to the FDA on June 24, 2024, seeking to expand the label of Zepbound to include treatment for OSA. This application has been fast-tracked for review, reflecting the FDA's recognition of the unmet need for severe conditions like OSA. A decision is anticipated by the end of 2024. The fast track designation from the FDA is reserved for drugs that offer treatment for an unmet medical need or expedite the process for drugs treating serious conditions.

Following the announcement of the trial results on June 21, 2024, competing companies like ResMed Inc. and Inspire Medical Systems Inc. experienced stock price decreases of 11.5% and 16%, respectively. Meanwhile, Eli Lilly's stock demonstrated a strong market response, with shares reaching an all-time high of $915.54. The company's stock chart has shown a parabolic arc pattern, and the daily Relative Strength Index (RSI) has stayed above the overbought 70-band since June 3, 2024.

Market analysts currently rate Eli Lilly & Co. as a “Moderate Buy.” MarketBeat suggests that while Eli Lilly is performing favorably, there are other top-performing stocks that could provide better opportunities for investors. Moreover, the platform highlights the importance of considering companies that announce stock buybacks and recommends leveraging a full suite of research tools for making investment decisions.

The medical community and investors are keenly watching Eli Lilly's progress with Tirzepatide for the treatment of OSA. If the FDA approves the label expansion for Zepbound, it could revolutionize the treatment options available for the millions suffering from this sleep disorder and serve as a significant growth catalyst for Eli Lilly's portfolio.