Zhītōng Cáijīng app learned that$Eli Lilly and Co (LLY.US)$recent clinical trial results of the new weight loss drug tirzepatide, marketed under the Mounjaro and Zepbound brands by LLY.US, have caused a sensation in the medical community and stirred up waves in the stock market. This drug has shown outstanding effects in weight loss and diabetes treatment, and the latest studies also show that it can significantly reduce the symptoms of obstructive sleep apnea in obese patients, which is undoubtedly a historic breakthrough in the treatment of obesity and sleep apnea. However, this medical news has dealt a heavy blow to the stock prices of related medical device manufacturers.

For example, the stock price of ventilator manufacturer$ResMed (RMD.US)$fell by about 11% on Monday, the largest single-day decline in more than 10 months. The stock price of Inspire Medical Systems (INSP.US), a manufacturer of sleep apnea implants, also fell sharply by 17%, touching its lowest point since November. Sales of sleep therapy products from AdaptHealth (AHCO.US) were not spared either, with a 8.1% drop, the largest since December.$Inspire Medical Systems (INSP.US)$Insulet (PODD.US)$AdaptHealth (AHCO.US)$It was not spared, and the stock price fell 8.1%, the largest drop since December.

This phenomenon is quite similar to the stock market turmoil a year ago, when diabetes equipment manufacturers such as$Insulet (PODD.US)$ and $Tandem Diabetes Care (TNDM.US)$fell sharply due to concerns about the rise of GLP-1 drugs. In 2023, Insulet's stock price fell by about 26%, and Tandem Diabetes Care fell even more, by 34%.

Market analysts have conducted in-depth analysis of this phenomenon. Citigroup's analyst downgraded ResMed's rating from "buy" to "neutral" and pointed out that as the efficacy of tirzepatide is gradually recognized, some mild patients may choose to abandon traditional CPAP treatment. Meanwhile, Truist Securities analyst Richard Newitter is optimistic about Insulet's prospects, believing that although the stock price may fluctuate in the short term, its weight loss business still has potential in the long term.

It is understood that Lilly's preliminary test results for tirzepatide in April have attracted widespread investor attention, and they are looking forward to the full details of the study being released to better evaluate its potential impact on the market.

Stifel analyst Jonathan D Block pointed out in his report that the new data brings more uncertainty to device manufacturers, but he also emphasized that tirzepatide's "impressive results" may make GLP-1 drugs play a more critical role in the treatment mode.

The research results of tirzepatide not only provide new hope for the treatment of obesity and related diseases, but also have a profound impact on the medical device market. As the research deepens and market awareness improves, this drug will play an increasingly important role in the future.

Editor/Emily