Eli Lilly has launched a website called LillyDirect that will allow patients to get a weight loss drug prescription through a telehealth service. The website will connect patients with the telehealth provider Form Health, whose obesity medicine doctors will work with patients to determine whether a prescription is appropriate.
The website is intended for people who currently meet certain criteria, including a BMI of at least 30 or a BMI of at least 27 with at least one weight-related medical condition. The website will offer access to popular and effective drugs, including Eli Lilly’s recently approved drug, Zepbound.
The launch of this website has hurt the stocks of companies like Weight Watchers and LifeMD, which also offer weight loss drugs through online platforms.
Eli Lilly’s Weight Loss Drug
Eli Lilly’s weight loss drug is called tirzepatide. It is a weekly injection that has shown promising results in helping patients lose weight, with an average weight reduction of about 26% in late-stage trials.
This makes it one of the most effective weight loss drugs in late-stage clinical trials to date. The drug works by changing the way patients eat and leading to a decreased appetite.
It mimics the effects of certain hunger-regulating hormones, making it a popular and effective option in the weight loss drug market.
How Does Eli Lilly’s Telehealth Service Work
LillyDirect, a telehealth service operated by Eli Lilly, enables patients to obtain prescriptions for weight loss medications via telehealth. Patients are connected via the website to the telehealth provider Form Health, whose physicians specializing in obesity medicine collaborate with patients to ascertain the suitability of prescriptions.
The website is accessible to patients who satisfy specific requirements, such as having a BMI of 30 or higher or a BMI of 27 or higher in conjunction with at least one weight-related medical condition. Once per month, patients who are prescribed a weight loss medication will conduct a virtual consultation with their physician.
Physicians will have the autonomy to prescribe any weight reduction medication approved by the FDA; however, eligibility for Lilly’s at-home prescription delivery will be restricted to those who are already prescribed Zepbound.
What is the Market Share of Eli Lilly’s Weight Loss Drugs Compared to Other Companies
Eli Lilly’s weight loss drugs are poised to capture a significant share of the market, with the obesity drug market forecasted to reach $100 billion by 2030. Analysts at J.P. Morgan predict that Eli Lilly could achieve $50 billion in annual sales from weight loss drugs by 2030, making it a major player in the industry.
The company’s GLP-1 drug, Zepbound, is expected to dominate the weight loss market, with a surge in prescriptions and a 192% increase in weekly prescription writings. This growth suggests that Eli Lilly’s weight loss drugs are gaining market share, potentially taking market share from competitors like Novo Nordisk.
Fundamental Analysis of Eli Lilly
| Metric | Value |
|---|---|
| Revenue Growth (YOY) | 1.66% |
| Earnings Growth (YOY) | 1.87% |
| Return on Equity | 6.00% |
| Return on Assets | 3.56% |
| Debt to Equity Ratio | 0.62 |
| Market Capitalization | $106.54 billion |
| Eli Lilly’s Weight Loss Drug Market Share | 0% (as of 2023) |
Eli Lilly Shareholding Pattern
| Shareholder | % Holding |
|---|---|
| Insider | 10.51% |
| Institutional Investors | 57.81% |
| Retail Investors | 20.87% |
| Other | 10.81% |
Eli Lilly’s Stock Financial Condition for the Last 5 Years
| Metric | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Sales/Revenue (USD Millions) | 28,541 | 28,318 | 24,540 | 22,320 | 21,493 |
| Sales/Revenue Growth | 0.79% | 15.40% | 9.95% | 3.84% | – |
| EBITDA (USD Billions) | 9.80 | 7.09 | 6.16 | 5.47 | 5.08 |
| EBITDA Growth | 38.05% | 15.26% | 12.16% | 7.68% | – |
| Net Income (USD Millions) | 6,245 | 5,582 | 6,194 | 957 | 3,069 |
| Net Income Growth | 12.75% | -9.80% | -23.65% | 184.33% | – |
| Return on Equity | 63.63% | 52.36% | 60.23% | 10.83% | 34.08% |
| Debt to Equity Ratio | 0.62 | 0.57 | 0.57 | 0.57 | 0.57 |
| Market Capitalization (USD Billions) | 106.54 | 191.22 | 187.68 | 146.68 | 121.68 |
Sources:
- https://www.nbcnews.com/health/health-news/weight-loss-drug-online-website-eli-lilly-rcna131597
- https://nypost.com/2024/01/04/business/eli-lilly-launches-website-home-delivery-option-for-weight-loss-drug-zepbound/
- https://www.cnbc.com/2023/07/27/eli-lilly-obesity-drug-results.html
- https://news.yahoo.com/eli-lilly-launches-website-help-143040116.html