American television personality and host of Mad Money on CNBC, Jim Cramer, tweeted his optimism about healthcare company Eli Lilly (NYSE: LLY) due to the success of its phase 3 clinical trial of its Tirzepatide drug.
“Tirzepatide from Lilly may be one of the biggest blockbusters ever,” Cramer quoted, citing that the CNBC investing club (run by Cramer’s Charitable Trust) has a big position in LLY and thinks that it can get bigger.
The results from Lilly’s phase 3 clinical trials of Tirzepatide were published in The New England Journal of Medicine, showing that the drug achieved between 16% and 22.5% weight loss in overweight adults.
Moreover, the drug met both co-primary endpoints of superior mean percent change in body weight from baseline. Similarly, between 89% and 96% of participants lost at least 5% of body weight, compared to only 28% in the placebo study.
Tirzepatide is a novel investigational once-weekly GIP (glucose-dependent insulinotropic polypeptide) receptor and GLP-1 (glucagon-like peptide-1) receptor agonist, representing a new class of medicines being studied for the treatment of obesity.
Meanwhile, as has been the case lately, Cramer’s tweet was hounded with negative replies. Respondents quipped that it was time to short LLY stock since Cramer was suggesting it.
Meanwhile, at the time of writing, LLY stock is trading up 1.5% in pre-market and has gained over 23% in the past six months.
Obesity is a chronic disease that leads to fat gain from disruptions in the mechanisms that control body weight. Obesity often increases the risk of other diseases and health issues, including heart problems, diabetes, and high blood pressure. “Lilly is working relentlessly to support people with obesity and modernize how this disease is approached,” the company said in a statement.
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