Why Eli Lilly Was Such a Healthy Stock Today

Most investors are aware of the vast sales potential for the effective new weight loss treatments known as GLP-1 drugs, and the market for them is still relatively quite young. On Tuesday, the Congressional Budget Office (CBO) put a number on one piece of that market's potential. As that figure was large, weight loss drug producer Eli Lilly (NYSE: LLY) saw a nearly 2% bump in its share price in response. That compared well to the just under 1% gain of the S&P 500 index during the session.The CBO's report was titled "How Would Authorizing Medicare to Cover Anti-Obesity Medications Affect the Federal Budget?" One of its major takeaways is that if the government's health insurance program were to cover weight loss drugs like Eli Lilly's Zepbound starting in January 2026, it would add a total of $35 billion in federal spending from that year through 2034. Currently, there are precious few Food and Drug Administration (FDA) authorized GLP-1 treatments for obesity, giving Zepbound an early-mover advantage.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool