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Benzinga
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FDA Flags Eli Lilly's Weight-Loss Drug Video For Misleading Claims

1. FDA found Eli Lilly's promotional video misleading regarding safety risks. 2. Zepbound and Mounjaro have serious health warnings that were underemphasized. 3. Eli Lilly has 15 days to respond to the FDA's findings on the video. 4. Currently, LLY shares are up 2.38% at $766.02. 5. The video featured biased perspectives from paid consultants minimizing risks.

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FAQ

Why Bearish?

The FDA's findings may lead to regulatory scrutiny affecting sales and reputation, similar to past FDA interventions with companies like Amgen impacting stock value.

How important is it?

The FDA's intervention suggests a serious risk to LLY's marketing approach, impacting investor confidence and potentially leading to regulatory restrictions.

Why Short Term?

Potential immediate negative sentiment due to regulatory actions could influence LLY’s stock price in the short-term, but long-term effects depend on resolution.

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