According to the financial news app, Eli Lilly and Co (LLY.US) will reinvest 3 billion USD to expand its production base in the USA, in order to increase the output of its flagship diabetes and weight loss medications.

The usa pharmaceutical giant Eli Lilly announced that in comparative trials, its weight loss drug Zepbound's efficacy surpassed that of Novo-Nordisk A/S's Wegovy.

Trials showed that patients using Zepbound lost an average of 20.2% of their body weight, while Wegovy patients lost 13.7%. Eli Lilly plans to publish the results in a peer-reviewed journal and present them at a medical conference.

Citic sec research reports indicate that the performance of overseas giants continues to exceed expectations, and the acceleration of domestic research and development progress suggests that the industrial trend of weight loss drugs is likely to become more defined. It is expected that subsequent performance guidance from overseas giants and outstanding drug sales data exceeding expectations, as well as disclosures of phase achievements in the development of overseas GLP-1 drugs for other indications and successful approvals for domestic related product launches, will repeatedly catalyze the weight loss drug sector, likely forming a cross-year thematic market. Two investment lines are recommended:

1) Focus on innovative drug companies with rapid clinical research progress and favorable clinical outcomes, especially in the context where there are few approved drugs for weight loss treatment in our country and the demand for weight loss continues to grow, which are likely to continually benefit from the industrial trend.

2) Pay attention to the upstream manufacturing chain, especially suppliers that have already entered or are likely to enter the overseas giants' major product supply chains, where performance contributions may have considerable elasticity, likely benefiting continuously from the increase in terminal product volume.

Hong Kong stocks related to weight loss drug concepts:

Lai Kai Pharmaceuticals-B (02105): On November 20, Lai Kai Pharmaceuticals announced that it has reached a global clinical cooperation agreement with Eli Lilly and Co, which will be responsible for conducting a Phase I clinical study in the USA for Lai Kai's weight loss drug LAE102 and covering the related costs. It is reported that LAE102 is an independently developed monoclonal antibody targeting Act RIIA, which plays an important role in muscle regeneration and fat metabolism. In preclinical models, LAE102 has shown effects of increasing muscle and reducing fat.

Innovent Bio (01801): Innovent Bio's GLP-1/GCG dual agonist Mazdutide is at the forefront of domestic GLP-1 innovative drugs. Previously, the drug's two NDAs (New Drug Applications) were accepted domestically, with indications including long-term weight management for obese or overweight populations and treatment of type 2 diabetes, among which the obesity indication is expected to be approved in the first half of next year. Jianyin International believes that Innovent Bio's weight loss drug Mazdutide has the potential to replicate Eli Lilly and Co's success with its blockbuster weight loss drug in Western countries. Institutions expect that Innovent Bio's globally pioneering product Mazdutide targeting GLP1R/GCGR dual pathways has entered the application for marketing stage and is likely to be approved for listing in the next two years.