Shares of Eli Lilly (LLY) surged by 16% Thursday morning, leading S\&P 500 gainers after the company announced positive clinical trial results for its oral weight-loss drug. The drug, named orforglipron, demonstrated statistically significant efficacy and a safety profile similar to injectable GLP-1 medicines. In the first of seven Phase 3 trials, orforglipron proved more effective than a placebo in causing weight loss and reducing A1C levels, a key metric for evaluating diabetes treatments. Higher doses of the drug resulted in greater reductions in both weight and A1C levels.\n\nThe drug exhibited gastrointestinal side effects similar to Eli Lilly\’s injectable weight-loss drugs, Mounjaro and Zepbound, including nausea, indigestion, and diarrhea. These side effects impacted between 10% to 26% of patients, depending on the dosage. Eli Lilly plans to present the data at a conference and in a peer-reviewed journal. Additional trial results for orforglipron will be released later this year, with the company expecting FDA approval as a type 2 diabetes treatment by 2026.\n\nWhile Eli Lilly\’s shares soared, those of its competitor Novo Nordisk dropped by 7% shortly after the market opened. Pfizer recently halted an oral drug trial due to a reported liver injury.\n— new from Investopedia
