Indianapolis, August 28, 2026, 09:44 (EDT)
- Shares in Lilly dropped 0.9% to $1,165.73 following the FDA ruling.
- Mounjaro received approval for a cardiovascular-risk indication targeting high-risk adults who have diabetes.
- Mounjaro quarterly sales climbed 91% to approximately $9.9 billion.
Eli Lilly and Company NYSE: LLY dropped 0.9% on Friday following the news that Mounjaro received a significant cardiovascular indication. The drop wiped out approximately $9.8 billion in implied equity value.
The subdued response highlights the extent to which investors are already pricing in growth. Mounjaro recorded approximately $9.9 billion in sales for the second quarter, marking a 91% increase.
The FDA has given approval for Mounjaro to lower the risk of cardiovascular death, heart attacks, and strokes in adults with type 2 diabetes who are considered high risk. Lilly reported the approval on Friday.
The label may boost acceptance among insurers and physicians. It further sets tirzepatide apart from others by more than just blood-sugar management and weight reduction.
The SURPASS-CVOT study evaluated Mounjaro against Lilly’s previous Trulicity drug. Mounjaro showed an 8% reduction in major cardiovascular event rates.
The hazard ratio stood at 0.92, with a 95.3% confidence interval ranging from 0.83 to 1.01. The research demonstrated noninferiority without achieving statistical superiority peer-reviewed study.
Mounjaro was linked to a 16% reduction in all-cause mortality. While this outcome bolstered the wider clinical argument, it was not the main endpoint.
| Investor measure | Verified figure | Read-through |
|---|---|---|
| LLY price | $1,165.73, down 0.88% | Green light was widely expected |
| Market value | $1.10 trillion | Substantial expectations reflected |
| Mounjaro Q2 sales | $9.9 billion, up 91% | Represents 43% of total revenue |
| U.S. Mounjaro sales | $4.8 billion, up 45% | Key factor for label expansion |
| MACE-3 result | 8% below Trulicity | Noninferior versus active comparator |
Lilly reported that Mounjaro accounted for roughly 43% of its $22.97 billion in quarterly revenue, while Zepbound contributed an additional $4.9 billion in sales from the U.S.
As a result, tirzepatide products accounted for almost 64% of the company’s total revenue. That level of concentration means every new approved use has a significant impact on Lilly’s valuation.
Mounjaro revenue in the U.S. climbed 45% to $4.8 billion, as robust demand was partly tempered by lower realized prices, Eli Lilly reported in its quarterly results.
The listed price for the medicine is $1,112.16 per fill. Final costs for patients depend on insurance coverage and available rebates Lilly pricing information.
Novo Nordisk A/S NYSE: NVO currently has cardiovascular indications for both Wegovy and Rybelsus. With Lilly’s approval, the gap in diabetes marketing is closing.
Wall Street sentiment stays positive. According to Google Finance, there are 18 buy recommendations and two hold ratings, with an average price target of $1,391.61.
Risks: Gains in volume may be offset if realized prices decrease. Growth could also face headwinds from supply limitations, rebates and market competition. Mounjaro includes warnings for thyroid C-cell tumors and pancreatitis.
The approval expands an already leading franchise. Increases in prescriptions and net pricing will determine if Lilly’s earnings expectations rise.
Reuters has also verified the FDA ruling and the results from the trial.
Related articles: NYSE:LLY
