Eli Lilly shares boosted by Mounjaro and Zepbound diabetes test results

Eli Lilly (NYSE:LLY) shares gained nearly 3% on Tuesday with the latest research data finding that its in-demand weight loss medication tirzepatide, marketed under the Mounjaro and Zepbound brand names, had shown a significant reduction in the risk of developing type 2 diabetes.

The risk of type 2 diabetes was reduced by 94% in a late-stage clinical trial, the pharmaceutical firm reported.

The study involved 1,032 obese or overweight adults with pre-diabetes, and after 176 weeks of the trial, participants on the highest dose on average lost 22.9% of body weight and reduced their chances of developing Type 2 Diabetes.

It was also noted that during a 17-week off-treatment follow-up, patients began regaining weight and showed some increase in the progression to diabetes.

Eli Lilly noted that tirzepatide works by mimicking natural hormones that stimulate insulin release, reduce appetite, and enhance feelings of fullness - these are effects that it said contributed to significant weight loss and a decreased risk of type 2 diabetes.

The treatment’s most frequently reported side effects were gastrointestinal including diarrhea, nausea, and vomiting, described as “generally mild to moderate in severity”.

In New York, Eli Lilly stock gained $24.11 or 2.62% changing hands at $945.51- after reaching as high as $976, which was a new high for the share.