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Eli Lilly's experimental obesity therapy bimagrumab drew mixed reactions from Wall Street after the company recently presented Phase 2B data at the American Diabetes Association's (ADA) annual conference.
The pharma giant's shares closed nearly 1% higher at $778.08 on Tuesday before dipping slightly in after-hours trading.
Leerink Partners called the results "compelling" in terms of efficacy, according to a CNBC article.
The firm noted that patients who took the highest dose of bimagrumab alongside semaglutide lost more fat mass than those on semaglutide alone.
However, analysts at Leerink and Jefferies did not include bimagrumab revenue in their financial models, citing the need for more data.
Wolfe Research said safety and discontinuation rates kept them on the sidelines despite maintaining an ‘Outperform’ rating on Lilly shares.
Bimagrumab is being studied as a monoclonal antibody targeting activin type II receptors.
Lilly presented results from the BELIEVE Phase 2B study using intravenous administration, and said additional Phase 2 trials are underway evaluating subcutaneous bimagrumab dosed weekly with or without tirzepatide.
Bernstein said the drug may eventually be used in targeted populations such as elderly patients or those seeking to shift body composition with minimal weight loss.
The research firm noted this could include patients where muscle loss is a clinical concern.
Lilly's broader obesity pipeline also includes orforglipron, a once-daily oral GLP-1 candidate, and retatrutide.
Late-stage data from orforglipron is expected in the third quarter (Q3).
At the same ADA conference, Lilly reported that its once-weekly insulin candidate efsitora alfa met primary endpoints across three Phase 3 trials in adults with type 2 diabetes, showing non-inferior A1C reductions versus daily insulin comparators.
The company also shared Phase 3 data from the ACHIEVE-1 trial of orforglipron, its oral obesity drug, which met A1C reduction targets and showed dose-dependent weight loss over 40 weeks.
A1C is a measure of average blood sugar (glucose) for 2–3 months and is a key indicator in the treatment of diabetes. Lower A1C levels equal less risk of diabetes complications.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.
However, Lilly’s stock is flat so far in 2025.
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