Eli Lilly stock skidded Monday after a new study showed patients who stopped taking weight-loss drug Zepbound slowly regained weight over a year.
The study published in the Journal of the American Medical Association is one of the first to analyze the long-term impact of stopping treatment with a weight-loss drug. Overall, patients who switched to a placebo regained weight — but not as much as they originally lost.
Jeff Emmick, Lilly's senior vice president of product development, noted patients might have to keep taking weight-loss drugs long-term.
"Patients, providers and the public do not always understand obesity is a chronic disease that often requires ongoing treatment, which can mean that treatment is stopped once weight goals are met," he said in a statement. "However, studies like Surmount-4 show that continued therapy can help people living with obesity maintain their weight loss."
Still, Eli Lilly stock toppled 2.3% to close at 584.04 on today's stock market. Shares of rival Novo Nordisk closed roughly flat at 96.65.
Eli Lilly Stock: 20.9% Weight Loss
Over roughly eight months, 650 adults taking Lilly's new weight-loss drug, Zepbound, lost an average 20.9% of their weight. Those that switched to a placebo regained about 14% of their weight over a year. In comparison, patients who continued taking Zepbound lost an additional 5.5% of their weight.
The most common side-effects among Zepbound recipients were gastrointestinal events. That lines up with the drug class, which is known to cause diarrhea and nausea.
Importantly, patients who switched to a placebo still came out ahead in terms of weight loss. Overall, those taking Zepbound lost an average 25.3% of their weight during the 88-week study. Patients who switched to the placebo at 36 weeks still lost 9.9% of their weight.
But Eli Lilly stock tumbled below its 50-day moving average, according to MarketSmith.com. Shares are forming a flat base with a buy point at 629.97.
Eli Lilly shares have a strong IBD Digital Relative Strength Rating of 95, putting them in the top 5% of all stocks when it comes to 12-month performance.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
