Eli Lilly Bets Big on Untested Weight-Loss Drug, Stockpiles Inventory
Eli Lilly is investing heavily in its experimental oral weight-loss drug, orforglipron, recording nearly $550 million in "pre-launch inventory" in its financial statements.
This move is unusual, as it comes more than a year before the drug's anticipated launch in 2026. Most pharmaceutical companies typically include such inventories in their financial statements closer to approval.
"This earlier-than-normal inventory build is certainly much larger than normal," said Kevin Gade of Bahl & Gaynor, which holds Lilly shares.
Lilly is aiming to launch the drug as early as possible to gain a competitive advantage in the growing market for obesity treatments. Novo Nordisk and Lilly currently dominate the field with injectable drugs.
Analysts estimate that Lilly's inventory build-up implies potential sales of $10 billion based on 2024 figures. The company is also expanding manufacturing capacity for the drug.
Lilly is expected to release late-stage trial data for orforglipron by April. In mid-stage trials, the drug demonstrated a significant weight loss effect, reducing weight by up to 14.7% after 36 weeks.