A hopeful report about a potential blockbuster drug currently in development and news of an expansion of manufacturing capability helped push Eli Lilly (LLY 2.66%) stock skyward on Tuesday. Shares of the massive U.S. pharmaceutical company closed the day more than 2% higher in value, on a session when the S&P 500 index landed slightly in the red.
A quickened approval process
Reuters published an article speculating that orforglipron, Eli Lilly's next-generation obesity drug currently in development, could earn Food and Drug Administration (FDA) approval by the end of this year.
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The report was anchored by several analysts tracking Eli Lilly who believe a fast-track review process recently launched by the regulator could put orforglipron on pharmacy shelves very soon. Under the FDA's Commissioner's National Priority Voucher, the process for qualifying investigational drugs can be shorted to within 1-2 months. That's well down from the roughly 10 months for a standard review.
The news agency quoted one of those analysts, Jefferies' Akash Tiwari, as saying that "We think orforglipron is a prime candidate for this pilot program as it treats a high-burden chronic condition and can be priced at parity."
NYSE: LLY
Key Data Points
Virginia expansion
Meanwhile, Eli Lilly announced that it aims to construct a new manufacturing facility in Virginia. This factory, estimated to cost $5 billion, will concentrate largely on the production of antibody-drug conjugates, medications that are designed for delivery directly to affected cells in the body.
The Virginia plant is part of an assertive "capital expansion" program. Eli Lilly said it has devoted $50 billion to activities such as factory builds since 2020.
