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INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY), a pharmaceutical powerhouse with a market capitalization of $683 billion and impressive gross margins of 83%, announced Wednesday that its diabetes medication Mounjaro (tirzepatide) demonstrated significant improvements in blood sugar control and body mass index (BMI) reduction in children and adolescents with type 2 diabetes. According to InvestingPro data, the company’s strong financial health and industry leadership are reflected in its robust 37% revenue growth over the last twelve months.
In the Phase 3 SURPASS-PEDS trial, Mounjaro met its primary endpoint by reducing A1C levels by an average of 2.2% from baseline after 30 weeks of treatment, compared to a 0.05% increase with placebo. The trial included 99 participants aged 10 to under 18 years with type 2 diabetes inadequately controlled with metformin, basal insulin, or both.
Key secondary endpoints were also achieved, with 86.1% of participants on the 10 mg dose reaching a target A1C of 6.5% or lower. The 10 mg dose reduced BMI by 11.2% on average at 30 weeks, with improvements continuing through the 52-week extension period.
"Youth living with type 2 diabetes often face a more aggressive disease course," said Tamara Hannon, lead trial investigator and director of the Clinical Diabetes Program at Indiana University School of Medicine, in the company’s press release. The positive trial results align with growing analyst confidence in Eli Lilly’s outlook, with InvestingPro reporting that 14 analysts have recently revised their earnings estimates upward. For deeper insights into Eli Lilly’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The safety profile was generally consistent with previous adult studies. The most common adverse events included gastrointestinal issues such as diarrhea (25% vs. 6% with placebo), nausea (20% vs. 9%), and vomiting (14% vs. 3%). These events were primarily mild to moderate and occurred mainly during dose escalation.
Lilly has submitted the results to global regulatory agencies seeking an expanded indication for Mounjaro. The findings were presented at the European Association for the Study of Diabetes Annual Meeting 2025 and published in The Lancet. With a P/E ratio of 49.8 reflecting high growth expectations, Eli Lilly continues to demonstrate its position as a prominent player in the pharmaceuticals industry, maintaining strong cash flows and a moderate debt level according to InvestingPro analysis.
In other recent news, Eli Lilly and Company has reported significant advancements in its diabetes treatment research. The company’s experimental oral GLP-1 drug, orforglipron, demonstrated superior results in a Phase 3 clinical trial compared to Novo Nordisk’s oral semaglutide. The 52-week trial, involving 1,698 adults with type 2 diabetes, showed that orforglipron achieved greater improvements in blood sugar control and weight loss. Specifically, the drug lowered A1C levels by 2.2% at the highest dose, compared to a 1.4% reduction with semaglutide.
In addition, Eli Lilly’s orforglipron is under scrutiny in the obesity treatment space, with data published in the New England Journal of Medicine. Analysts are maintaining positive outlooks on Eli Lilly’s stock. BMO Capital has reiterated an Outperform rating with a price target of $840, while Cantor Fitzgerald has maintained an Overweight rating with an $825 target. Bernstein has also reiterated an Outperform rating, setting a price target of $1,000, despite noting that weight loss with orforglipron plateaued around 40 weeks in the ATTAIN-1 trial. These developments continue to attract attention from investors and analysts alike.
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