Lilly's Smart Move -- To Drop Prices -- And Ramp Up Volumes, In The US Weight Loss Markets... Future Is Very Bright For The Indiana Drug-Maker.

To be clear, this has next to nothing to do with Lilly's "pen-form" dosings of a different formulation for diabetes / weight loss, one that will see list prices reduced NEXT YEAR (if ever) under a supposed Trump negotiated agreement.

No, this is a separate "make up on volume" what you drop in price VOLUNTARY marketing effort. And it will -- I am sure -- pay off handsomely for Lilly. [To be fair, if the pen form drops price in 2026 -- it too will likely make it all back, on US volumes.]

Disclosure: I have long held a substantial Lilly position, since it was $560 or so, and it is now over. . . $1,030. But this entry point is also a fine one, as many analysts have the 12 month target above $1,200.

I admit that I've long believed sensible eating -- along with vigorous exercise -- are the best means to control weight. But given that diabetes (much of it related to obesity, in truth) has become a very high burden US disease, this fleet of drugs is absolutely going to sell into the mid-$30 billion of dollars per year, in the coming years. And that will (sort of sadly) persist, into the 2040s. So hop this train while you still might make a killing, on even modestly-invested dollars. [The risk of losing it all is only a smidge higher than a US government default on its own bonds.] Here's the latest from CNBC.com:

. . .Starting Monday, cash-paying patients with a valid prescription can get the starting dose of Zepbound vials for as low as $299 per month on LillyDirect, down from a previous price of $349 per month. They can also access the next dose, 5 milligrams, for $399 per month and all other doses for $449 per month, down from $499 per month across those sizes.

Zepbound carries a list price of roughly $1,086 per month. That price point, and spotty insurance coverage for weight loss drugs in the U.S., have been significant barriers to access for some patients. . . .

Eli Lilly’s stock. . . has climbed more than 36% this year. . . . Its meteoric rise due to the success of Zepbound and its diabetes injection Mounjaro vaulted it to becoming the first health-care company to hit a $1 trillion market value last month. . . .

Onward, now you know -- Lilly once again played "rope-a-dope" on Tangerine. [Yes, this is my "power alley".] And it all comes, as large lazy flakes are wheeling down now, almost in slow motion, on the updrafts -- landing atop the foot of white stuff we already have down, here. Looks like the heavy metal shovel is in my future, once more, later this evening. Heh.

[Of course, as to all of the above, you should do your own due diligence. Out.]

नमस्ते