Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Thursday, August 7th, and I'm your host, Kim Khan. Our top story so far. Despite

reporting better than expected Q2 results and increasing its 2025 outlook, Eli Lilly is under pressure

amid concerns over late-stage trial data for the company's oral weight loss drug or

4glyprone.

Head of the Q2 print, the company posted initial data from its Phase 3, Attain 1 trial,

indicating that its oral GLP1 receptor agonist led to up to 11% of weight loss over 70 weeks,

according to the study's intent to treat analysis. As for the main goal, once daily of 4 glopron

at 36 milligrams, led to an average weight loss of 12.4% or 27.3 pounds, compared to a 0.9%

or 2.2 pounds average weight loss experienced by those on placebo,

the company said, citing a per-proticle analysis. In September 2024, Novo Nordisk said that

its oral weight loss candidate Amicreton led to up to 13% weight loss over 12 weeks at the highest

dose tested in a phase one trial. Lily shares, which get an F-quant grade for valuation, with a non-gap PE around 54,

compared to the sector median of 16, fell in reaction.

Novo, with a PE of around 12, moved higher.

But unlike Novo, which recently lowered its growth outlook, citing headwinds in the GLP1 market,

Lilly increased the midpoint of its 2025 revenue guidance by $1.5 billion to $60 to $62 billion,

in line with the $60.1 billion in the consensus.

The company also revised its EPS outlook to $21.75 to $23 from $278 to $2,

compared with the $2198 consensus. As for Q2, Lilly generated 15.6 billion

in revenue with a 38% year-over-year growth as its obesity drug franchise dominated by diabetes

drug Monjaro and a weight loss therapy Zepbound outperformed. They added more than $8 billion

...