Eli Lilly (LLY) stock rises 3% on Foundayo prescription data and heart study

TLDR

• Eli Lilly’s obesity pill, Foundio, received 1,390 prescriptions in the United States in its first week of launch, ending April 10.
• Novo Nordisk’s oral Wegovy received 3,071 prescriptions in just the first four days after its launch on January 5.
• A recent trial of 2,700 patients showed that Fundayo reduced the risk of heart attack, stroke, or cardiovascular death by 16% compared with insulin glargine.
• The same study found that Fundayo reduced the risk of death from any cause by 57%.
• LLY rose nearly 3% in pre-market trading following the release of prescription and trial data.

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Eli Lilly’s newly approved obesity pill Fodayo is picking up early prescription numbers, though it still trails Novo Nordisk’s oral competitor Wegovy out of the gate.

Eli Lilly & Company, LLY

Foundayo received FDA approval on April 1 for weight loss. Prescriptions were accepted immediately through LillyDirect, with shipping beginning April 6. Widespread availability through retail pharmacies and telehealth providers in the United States came on April 9.

As of the week ending April 10, Fundayo had been prescribed 1,390 times in the United States, according to IQVIA data cited by one analyst. This is compared to Novo Nordisk Oral Wegovy, which reached 3,071 prescriptions in just the first four days after its launch on January 5.

Novo’s oral Wegovy tallied 113,354 U.S. prescriptions in the same week, up from 105,366 the previous week.

Lilly told investors to expect volatile weekly and daily capture rate data early in the launch. The weekly numbers include retail prescriptions along with samples from telehealth, LillyDirect and mail-order channels, according to Guggenheim analysts.

LLY rose nearly 3% in premarket trading after the numbers arrived.

Foundayo shows heart and mortality benefits in trial

In addition to prescription data, Lily Published results of a late-stage cardiovascular trial that included 2,700 patients with type 2 diabetes and obesity who were at high risk of developing cardiovascular disease.

Vandayo reduced the risk of heart attack, stroke, or death from cardiovascular disease by 16% compared with insulin glargine, a long-acting insulin sold under brands including Sanofi’s Lantus and Lilly’s Basaglar.

The drug also reduced the risk of death from any cause by 57% in the study. Foundayo improved A1C levels and body weight at week 52.

The FDA had previously requested Lilly to conduct additional post-marketing studies on possible liver injury. The trial included a liver safety analysis, and Lilly said no liver safety concerns were found. This result was consistent with previous studies.

RBC Capital Markets analyst Truong Huynh said the liver safety data should allay concerns that Foundayo carries unique liver risks compared with competitors such as oral Wegovy.

Lilly Diabetes Corporation approves Fundadio

Lilly plans to use the trial data to obtain approval from the US Food and Drug Administration for the drug Fundaio to treat type 2 diabetes. The company said it will submit an application by the end of the second quarter, using the Commissioner’s National Priority Review Voucher to target a faster decision from the FDA.

The U.S. Food and Drug Administration approved weight-loss drug Foundayo earlier this month, intensifying competition with Novo Nordisk, which has had oral Wegovy on the market since January.

Novo’s oral Wegovy registered 113,354 U.S. prescriptions in the week ending April 10.