Eli Lilly Shares Surge After Weight-Loss Pill Hits Trial Targets

August 26, 2025 - U.S. markets

Eli Lilly & Co. shares jumped sharply on Tuesday after the pharmaceutical giant announced that its experimental oral weight-loss drug, orforglipron, met both primary and secondary endpoints in a pivotal Phase 3 trial for adults with obesity and Type 2 diabetes. The company’s stock climbed 5.9%, making it the top performer in the S&P 500 on the day.

Orforglipron, a once-daily glucagon-like peptide-1 (GLP-1) receptor agonist, produced an average body-weight reduction of 10.5% over 72 weeks at the highest dose, compared with a 2.2% loss for placebo recipients. In addition, 75% of treated patients achieved hemoglobin A1c levels at or below diagnostic thresholds for diabetes by the end of the study.

Eli Lilly now plans to file for regulatory approval of orforglipron by the end of 2025, potentially offering the first convenient, oral alternative to existing injectable GLP-1 therapies such as Novo Nordisk’s Ozempic and Wegovy. Kenneth Custer, Lilly’s executive vice president, said, “If approved, we are ready to offer a convenient, once-daily pill that can be scaled globally - removing barriers and redefining how obesity is treated around the world”.

The trial success follows earlier, more modest results that had tempered investor expectations. However, analysts note that orforglipron’s efficacy in patients with both obesity and diabetes-a hard-to-treat population-could secure a strong commercial position against injectable competitors.

Beyond clinical implications, Lilly’s share performance also reflected broader market optimism. The S&P 500 rose 0.4% on Tuesday, buoyed by investors looking past political uncertainties and focusing on upcoming tech earnings.

Eli Lilly’s stock surge underscores the high stakes in the race for oral GLP-1 therapies. With Novo Nordisk poised to win FDA approval for its own weight-loss pill later this year, orforglipron’s successful trial places Lilly on track to compete directly in the expanding anti-obesity market.