Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Eli Lilly's Omvoh nears EU approval for Crohn's disease

Published 12/13/2024, 08:16 AM
© Reuters.
LLY
-

INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY), a pharmaceutical giant with a market capitalization of $705 billion and impressive gross profit margins of 81%, announced today that the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended approval of Omvoh (mirikizumab) for the treatment of adults with moderately to severely active Crohn's disease who have not responded adequately to conventional or biologic therapies. According to InvestingPro analysis, Lilly is currently trading above its Fair Value, reflecting strong investor confidence in its pipeline developments. This positive opinion brings Omvoh closer to becoming the first Crohn's disease treatment to include improvements in histologic measures of inflammation on its label, if approved by the European Commission.

The CHMP's endorsement is based on the Phase 3 VIVID-1 trial, which demonstrated that patients treated with mirikizumab experienced significant improvements in clinical remission and endoscopic response, as well as all major secondary endpoints, at both Week 12 and Week 52 compared to placebo. Notably, Omvoh was also the first pivotal Crohn's disease trial to report benefits in the challenging symptom of bowel urgency, using a patient-centric scale.

Dr. Stefan Schreiber, director of the Clinic for Internal Medicine I at Kiel Campus of the University Hospital Schleswig-Holstein, expressed enthusiasm for Omvoh's potential to provide comprehensive disease control, including relief from disruptive symptoms and control of intestinal inflammation.

The safety profile of mirikizumab in patients with Crohn's disease was consistent with its known safety profile in ulcerative colitis (UC), for which Omvoh was previously approved in 2023 in the European Union, U.S., Japan, and 44 countries worldwide.

The European Commission's final decision on the approval of Omvoh for Crohn's disease is anticipated within the next one to two months. Lilly has also submitted marketing applications for Omvoh in Crohn's disease in the U.S. and Japan, with regulatory decisions expected in the first half of 2025. With revenue growth of 27% in the last twelve months and strong analyst support, Lilly continues to demonstrate robust market performance. InvestingPro subscribers can access 15+ additional exclusive insights about Lilly's financial health and growth prospects through the comprehensive Pro Research Report.

Crohn's disease is a chronic inflammatory bowel disease that can lead to progressive bowel damage, disability, and reduced quality of life. Current treatments do not provide remission for the majority of patients or maintain it long term. Omvoh's approval would represent a significant advancement in the treatment options available for this patient population. With an impressive financial health score rated as "GOOD" by InvestingPro analysts and a strong track record of dividend payments for 54 consecutive years, Lilly demonstrates the financial stability needed to support its innovative drug development programs. Unlock detailed valuation metrics, growth forecasts, and expert analysis with an InvestingPro subscription.

This news is based on a press release statement issued by Eli Lilly and Company.

In other recent news, Novo Nordisk (NYSE:NVO) and Eli Lilly have been highlighted as key players in the rapidly growing $95 billion obesity drug market, dominated by GLP-1 medications such as Wegovy and Zepbound. Bernstein analysts have emphasized the potential of these drugs in addressing the global obesity epidemic. Eli Lilly, with a market capitalization exceeding $705 billion and a revenue growth of 27% in the last twelve months, is well-positioned in this expanding market.

Recent developments include Eli Lilly's partnership with digital health company Ro to streamline access to Zepbound single-dose vials through LillyDirect, a self-pay pharmacy channel. Eli Lilly also recently announced a $15 billion share repurchase initiative and a 15% increase in its quarterly dividend.

On the clinical front, Eli Lilly reported promising results from the Phase 3 EMBER-3 study, evaluating the efficacy of imlunestrant, an investigational oral selective estrogen receptor degrader (SERD), for the treatment of advanced breast cancer. The study demonstrated a significant improvement in progression-free survival.

Bernstein SocGen Group reaffirmed its positive stance on Eli Lilly, maintaining an Outperform rating, citing potential growth for the company and its GLP1 market. However, Robert F. Kennedy Jr.'s emphasis on lifestyle changes over GLP-1 drugs for weight management is being closely monitored for potential impact on health policy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.