Shares of Eli Lilly & Co. Inc. LLY, -0.21% gained 2.5% in premarket trading on Thursday after UBS upgraded the stock to buy from neutral, saying Mounjaro, the company’s newly approved Type 2 diabetes drug, could be “the biggest drug ever.” UBS analysts predict peak sales of $25 billion if the therapy is also approved as a treatment for weight management in people with obesity. “Tirzepatide’s robust efficacy in both obesity and [Type 2 diabetes] should drive sales into a range that we believe could see this being one of the best-selling drugs in history,” the analysts told investors in a note on Thursday. The Food and Drug Administration in May approved Mounjaro as Type 2 diabetes treatment, and Lilly is expected to file for approval of the same drug as a weight-management therapy after clinical research shared last spring showed that the drug helped people lose up to 22% of their body weight. Lilly’s stock is up 7.3% so far this year, while the broader S&P 500 SPX, -2.37% has declined 20.5%.
The S&P 500 and Nasdaq Composite ended the week lower despite a massive Thursday.

Jaimy Lee is a health-care reporter for MarketWatch. She is based in New York.
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