Lilly Rises on FDA Approval of Weight-Loss Drug-Zepbound for Sleep Apnea

Core Insights - Eli Lilly's Zepbound has received FDA approval for treating obstructive sleep apnea in adults with obesity, demonstrating significant efficacy in clinical trials [1][2][6] - The drug is reported to be five times more effective than a placebo in reducing breathing disruptions associated with obstructive sleep apnea [2][3] - Approximately 50% of trial participants experienced complete resolution of their sleep apnea symptoms [5] Group 1: Drug Efficacy and Trials - Zepbound was found to reduce the number of breathing disruptions per hour significantly, especially in patients not using a sleep apnea mask [3] - In trials, adults taking Zepbound alone lost an average of 45 pounds (18% of body weight), while those using it with PAP therapy lost an average of 50 pounds (20% of body weight) [4] - Nearly half of the clinical trial patients reported improvements that led to the absence of symptoms associated with obstructive sleep apnea [5] Group 2: Market Context and Company Performance - Zepbound's approval follows its earlier approval for obesity treatment in November 2023, positioning it alongside Eli Lilly's other drug, Mounjaro, in a growing weight-loss market [6] - Eli Lilly's stock rose by 1.6% on the day following the announcement, contributing to a year-to-date gain of approximately 34% [7] - In contrast, shares of ResMed, a company that produces sleep apnea masks, fell by 4% following the news, indicating potential market disruption due to Zepbound's efficacy [7]