Eli Lilly Stock Surges After Promising Results From GLP-1 Pill Trial

Eli Lilly & Co. (LLY) shares jumped by 11% on Thursday morning following the company’s announcement of encouraging findings from a late-stage study of its oral GLP-1 drug candidate targeting Type 2 diabetes and obesity.

The treatment, named orforglipron, produced statistically meaningful results during its Phase 3 clinical trial and demonstrated a safety profile similar to current injectable GLP-1 therapies. According to the pharmaceutical firm, the once-daily tablet reduced average A1C levels (a measure of long-term blood sugar) by 1.3% to 1.6% over a 40-week period and led to an average weight loss of 16 pounds at the highest tested dose.

In a statement, Lilly (LLY) said the medicine marks the first oral small-molecule GLP-1 receptor agonist to reach this phase of development successfully. Until now, GLP-1 drugs have only been available via injection, and the prospect of a pill could significantly broaden patient access due to ease of use.

“We are pleased to see that our latest incretin medicine meets our expectations for safety and tolerability, glucose control and weight loss, and we look forward to additional data readouts later this year,” said Lilly CEO David A. Ricks in prepared remarks.

“As a convenient once-daily pill, orforglipron may provide a new option and, if approved, could be readily manufactured and launched at scale for use by people around the world.”

Lilly (LLY), alongside its competitor Novo Nordisk (NVO) of Denmark, is a key player in the GLP-1 market with well-known treatments like Mounjaro for diabetes and Zepbound for obesity. These medications act by mimicking hormones in the gut that influence appetite and satiety.

Due to high demand for injectable GLP-1 drugs, supply shortages have occurred — a problem that could ease once oral alternatives like orforglipron are approved.

Smaller pharmaceutical companies such as Viking Therapeutics Inc. (VKTX) and Terns Pharmaceuticals Inc. (TERN) are also entering the race to develop GLP-1 pills in hopes of capturing a share of the growing market.

The trial enrolled 559 adult participants with Type 2 diabetes who were unable to control their blood sugar with diet and exercise alone. Conducted across multiple countries — including the United States, China, India, Japan, and Mexico — the study tested doses of 3 mg, 12 mg, and 36 mg of orforglipron, as well as a placebo. It began in 2023, and more data is expected later this year and throughout 2026.

Lilly (LLY) also reported that participants’ average weight loss had not plateaued by the end of the 40-week trial, suggesting that further reductions in weight could be possible with longer use.

The company plans to unveil these findings at the upcoming 85th Scientific Sessions of the American Diabetes Association and also intends to publish them in a peer-reviewed medical journal.

“Lilly expects to submit orforglipron for weight management to global regulatory agencies by the end of this year, with the submission for the treatment of type 2 diabetes anticipated in 2026,” said the statement.

Despite Thursday’s surge, Lilly (LLY) shares are down 2.1% over the past 12 months, whereas the S&P 500 has advanced by 5.1% over the same period.

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