Key insights
- The FDA approval of Eli Lilly's oral GLP-1 weight loss pill is expected to expand the market due to increased accessibility and convenience compared to injectable options. The partnership with Insilico Medicine to develop AI-driven drugs signals a growing trend of AI integration in biotech, potentially improving drug discovery, marketing, and manufacturing. This news is moderately bullish for LLY and the broader biotech sector.
The US Federal Drug Administration (FDA) approved Eli Lilly (LLY) new GLP-1 weight-loss pill. Eli Lilly also struck a deal with Insilico Medicine to bring artificial intelligence (AI) drugs to market.
Rock Health founder and "Massively Better Healthcare" author, Halle Tecco, joins Yahoo Finance to discuss the latest with Eli Lilly.
The FDA approving Eli Lilly's GLP-1 pill. What what did you make of that news? An oral option, Halle.
Yeah. Well, obviously this has come after Novo's, um, Wegovy pill, which has been on the market now for a month and also quite successful. So, I think the more options that we have for folks, uh, that are effective, safe weight loss options to me is a good thing.
Do you think it it does it aggressively sort of expand the market, Halle? Are there a lot of people, for example, taking the shot right now, taking the jab, who are thinking, you know what? Man, that pill sound sounds like a better option.
Absolutely. And in fact, Josh, a lot of men are afraid of taking shots on a weekly basis. And so this is a great option for those who are maybe afraid of needles, but it's also a great option for folks who maybe travel a lot because the, uh, the injection requires refrigeration. As we know, the pill does not, so it is a lot more accessible. Again, more options, it helps people find something that works for them and it helps bring down prices.
sticking with them, they reached this deal with Insilico to bring AI developed drugs to market, Halle. I I guess is this when you hear about something like that, do you see that as, hey, that that is a real potential sweet spot for AI, drug discovery?
Yeah, absolutely. I think, um, when when Biotech is looking at AI for drug discovery, it's really just the beginning. We have everything from, uh, the way drugs are discovered, marketed, manufactured, that AI can really play a role. And we're actually seeing this from the VC's perspective. So, we went from 37% of VC dollars in digital health going towards AI enabled companies in 2024 to over half last year, and 2026 will undoubtedly be even higher because these companies are, uh, they're taking front stage, they're getting customers. They have real traction, and VCs want to be part of it.