Eli Lilly Trading Update

Eli Lilly was slightly lower on Thursday despite the FDA confirming that the shortage of their diabetes and weight-loss drug, tirzepatide, is resolved.

Key Points

• Eli Lilly (NYSE: LLY) experienced a slight decline in recent trading.
• The FDA announced that the shortage of tirzepatide injection products, initially starting in December 2022, has been resolved.
• The announcement from the FDA came in October, stating that the shortage of tirzepatide, the key ingredient in Eli Lilly’s diabetes medications Mounjaro and Zepbound, was over.
• However, the Outsourcing Facilities Association challenged this claim, arguing that a shortage still exists for compounded versions of the drug.
• During the reassessment phase, compounding pharmacies could continue producing generic versions of tirzepatide, but they now have 60 days to cease this production.
• The FDA has confirmed that Eli Lilly’s supply currently meets or exceeds demand for these drug products.
• Eli Lilly is also planning significant additional production in the upcoming months to ensure that supply meets or exceeds projected demand.