Eli Lilly & Co. (NYSE:LLY) announced positive topline results from its SURMOUNT-OSA Ph3 study on Wednesday, which evaluated tirzepatide compared to placebo in patients with obesity and sleep apnea.
According to the company, the phase 3 clinical trials that showed tirzepatide injection significantly reduced the apnea-hypopnea index compared to placebo, achieving the primary endpoints.
Eli Lilly shares are up 1.2% at $756.02 as of 11:07 am ET on Wednesday.
Reacting to the news, analysts at Morgan Stanley said that most notably, the patients in the Tirzepatide arms showed a mean AHI (apnea hypoxia index) reduction from baseline in line with the 50-60% range that they expected in their preview.
The investment bank added: "We believe that the data will (1) further bolster the case to payers and physicians that the category will have broader benefits beyond weight loss, (2) provide another path to Medicare coverage in the US, and (3) continue to build the data moat for the competition."
Meanwhile, analysts at Cantor Fitzgerald said that based on the data they have seen today, they think tirzepatide has the potential to be the first pharmaceutical treatment for the underlying disease.