Eli Lilly's CEO Dave Ricks spoke to Jim Cramer of CNBC about the company's plans to meet demand for their drugs, including Mounjaro. The drug has been approved to help treat diabetes, and will soon be cleared to help treat obesity.
Eli Lilly's stock rose nearly 15% at the close of business on Tuesday after an impressive earnings report which added more than 60 billion dollars to its market value.
CNBC interviewed CEO Dave Ricks
On Tuesday, his priority was to meet the demand for Mounjaro. Currently, the drug is only approved to treat diabetes by the FDA, but it is expected that the FDA will soon approve its use to treat obesity and other health conditions.
Ricks stated that his top priority was to expand the capacity of the company to produce not only Mounjaro but also other drugs in the pipeline to meet this challenge. "People get frustrated when they cannot obtain their medication -- We understand this, and we will fix the problem."
After a stellar performance, Eli Lilly's stock rose nearly 15% on Tuesday.
This added over $60 billion in market value. FactSet reports that the drug's stock, which reached an all-time record high of $538 Tuesday, was also boosted by news that a similar drug for diabetes and weight loss from a competitor company could be used to treat heart issues.
Ricks added that Eli Lilly announced last year its intention to double monthly production by December. He said that the company will soon launch Mounjaro as a vial and a multi-use pens, which would help increase global supplies.
Ricks believes Eli Lilly products will make people understand that obesity is a disease that needs to be addressed, and not just as a problem which can be solved by diet and exercise. He compared obesity with depression, pointing out Eli Lilly's involvement in the manufacture of depression drug Prozac.
Before we had Prozac people believed that doctors would say, "Well, you're a little depressed." Ricks explained that we know this is not true. There's a thing called clinical depression. "We treat it now like a disorder. In five or ten years, I believe we will look back at chronic weight management and obese the same way.
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Disclaimer Eli Lilly shares are held by the CNBC Investing Club Charitable Trust.
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