Why Eli Lilly hit the market on Tuesday

US pharmaceutical stock of the moment, Eli Lilly (LLY 3.06%)did pretty well on tuesday. Its price ended the day more than 3% higher on the back of good news from the lab about its hottest product. What also helped was a glowing new research note from an analyst. The performance of the action looked even better when compared to that of a S&P 500 index, which fell by 0.2%.

Zepbound for glory

That hot product is obesity treatment Zepbound, Eli Lilly’s entry into the weight loss drug market. The pharmaceutical giant announced that in a clinical trial, the molecule significantly reduced the risk of vulnerable people developing type 2 diabetes by 94%. Those individuals were either in a pre-diabetes stage or were obese or overweight.

Zepbound also did well as a weight loss treatment. Patients who received the drug showed an average decrease of almost 23% in body weight. This compared very favorably with an average of 2% for patients taking a placebo.

Both Eli Lilly and the Danish pharmaceutical company Novo Nordisk investigate their weight loss treatments for other medical uses. Novo Nordisk is the company behind the hugely popular Wegovy.

Wells Fargo’s New Top Pharmaceutical Choice

Separated, Wells Fargo signaled Eli Lilly as his new no. 1 among large-cap pharmaceutical stocks in the US market. In a new research note, the bank’s analysts said the company has a strong pipeline and is poised to fuel growth. Wells Fargo’s team said an improved supply chain and increased international sales make this a very attractive investment.