UBS analysts upgraded Eli Lilly stock to Buy, stating that the pharma company's Type 2 diabetes medication could become a best-selling drug.
SEANA SMITH: All right, my play today is Eli Lilly. It's a top trending ticker here on Yahoo Finance after UBS upgraded the stock to buy, saying that the pharma giant's type 2 diabetes drug Mounjaro could be one of the best selling drugs in history. Now, UBS sees peak sales of $25 billion if the drug is also approved as an obesity treatment. Now, clinical research shared last spring showing that the drug helped people lose up to 22% of their body weight.
The stock has actually done pretty decent so far this year. It's in the green compared to the losses that we're seeing in the broader market here. But Dave, the $25 billion here potential for this drug, if it is approved, to treat obesity could mean very, very strong returns here for Eli Lilly.
DAVE BRIGGS: It's a game changer, man. The 22% of body weight is an average of 50 pounds weight loss per participant in this study. But now on the downside, it is a hunger suppressant so it's not something that you can take, lose the weight, and then go off of. Generally speaking, they're finding people have to stay on it. And maybe forever, genetics plays a role here, unless you're going to make a major lifestyle adjustment to exercise and diet.
Anecdotally, talk to a couple of people out of my neck of the woods playing golf that are trying to get their hands on this diabetes drug that's used for weight loss, offering to pay four, five, six, seven times what it costs and cannot get their hands on it. This thing will fly--
SEANA SMITH: Really?
DAVE BRIGGS: --if and when approved.