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Eli Lilly Weight-Loss Pill Trial Disappoints, Offsetting Solid Profit and Sales

1. LLY shares dropped 14% after disappointing trial results for orforglipron. 2. Orforglipron's 12.4% weight loss was below expectations compared to Novo Nordisk's product. 3. Despite poor trial results, LLY reported strong Q2 earnings and revenue growth. 4. Sales of Zepbound and Mounjaro surged, indicating robust demand in the weight-loss segment. 5. LLY remains optimistic, seeking regulatory approval for orforglipron by year-end.

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FAQ

Why Bearish?

The significant drop in share price is due to unmet expectations for orforglipron. Historical data show that disappointing clinical trial results can lead to substantial price declines in biotech stocks.

How important is it?

Disappointing trial results directly impact LLY's market position in weight-loss drugs. Approval timelines and future earnings guidance will closely affect LLY’s stock price.

Why Short Term?

The immediate impact of trial results is often felt quickly, but long-term effects depend on future sales and approvals. As LLY seeks regulatory approval, sentiment may improve if results are favorable.

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