The U.S. Food and Drug Administration said Friday that it has approved the drug tirzepatide, which is administered to Eli Lily (LLY.N), which has the trade name Mounjaro, to help improve blood sugar control in adults with type 2 diabetes.
The FDA said Mundjaro along with diet and exercise improved blood sugar and was more effective than other diabetes treatments with which it was compared in clinical trials.
Mujaro is designed to activate receptors for hormones involved in controlling blood sugar. It is administered by subcutaneous injection once a week, with dose adjustment according to tolerability to achieve blood sugar targets.
Last month, Lily reported that a late-stage study of tirzepatide showed that it helped obese patients lose more than 20% of their weight, prompting Wall Street to raise drug sales forecasts.
According to Refinitiv, analysts currently predict that sales of tirzepatide in 2026 will reach $ 4.7 billion.
Similar drugs for diabetes include Ozempic from Novo Nordisk (NOVOb.CO), which is also FDA approved under the Wegovy brand for the treatment of obesity.
Type 2 diabetes, the most common form of the disease, is a chronic and progressive condition in which the body does not produce or use insulin normally, leading to high blood sugar.
According to the FDA, more than 30 million Americans have type 2 diabetes.
Shares of Eli Lilly fell an interest point to $ 291.40 during late trading on the New York Stock Exchange.