Eli Lilly continues its strong growth trajectory with the FDA approval of Ebglyss (lebrikizumab) in September 2024 for the treatment of moderate-to-severe atopic dermatitis, commonly known as eczema. This approval expands Eli Lilly's portfolio beyond its well-established presence in diabetes and obesity care, offering a new treatment option for adults who have not achieved adequate control with topical medications.
Eczema is a chronic inflammatory skin condition characterized by dry, itchy skin, rashes, and discoloration. According to Eli Lilly, approximately 16.5 million adults in the U.S. suffer from eczema, with about 40% experiencing moderate-to-severe symptoms. These symptoms can significantly impact quality of life, leading to skin cracking, bleeding, and increased risk of infection.
Ebglyss: An Injectable Alternative
Traditional treatments for eczema often involve topical medications such as creams, ointments, and gels. However, these options may not be sufficient for all patients, leaving many with persistent symptoms. Ebglyss offers an alternative as an injectable medication specifically targeting patients with moderate-to-severe eczema whose symptoms are not adequately managed by topical treatments.
Market Opportunity
The market for eczema treatments is substantial and growing. Precedence Research estimates that the global total addressable market will reach $31.4 billion by 2034, a significant increase from $14.7 billion today. North America is expected to be the largest market, potentially reaching $8.1 billion by the middle of the next decade.
Eli Lilly's Expanding Portfolio
Ebglyss approval comes at a time when Eli Lilly is experiencing significant growth, with its stock price increasing by 58% in 2024. This growth is largely attributed to the success of its GLP-1 agonists, Mounjaro and Zepbound, in the diabetes and obesity markets, as well as the FDA approval of its Alzheimer's drug, donanemab. The addition of Ebglyss further diversifies Eli Lilly's portfolio and strengthens its position in the pharmaceutical industry.
While Eli Lilly's price-to-earnings (P/E) ratio is high, analysts suggest that the company's diverse opportunities across Alzheimer's disease, eczema, and artificial intelligence may justify its valuation. The approval of Ebglyss represents a significant milestone for Eli Lilly, further solidifying its position as a leading pharmaceutical company with a strong growth outlook.
