Eli Lilly and Company (LLY) Announces Results From LTE of Phase 3 TRAILBLAZER-ALZ 2 Study

Eli Lilly and Company (NYSE:LLY) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On July 30, the company announced results from the long-term extension (LTE) of the Phase 3 TRAILBLAZER-ALZ 2 study, demonstrating that participants treated with Kisunla (donanemab-azbt) showcased slowing of decline, a benefit which continued to grow over 3 years as compared to an untreated external cohort from the Alzheimer’s Disease Neuroimaging Initiative (ADNI). The participants showed meaningful outcomes, strengthening the long-term value of early intervention.

To provide a brief background, the TRAILBLAZER-ALZ 2 LTE study was a Phase 3, double-blind extension of the original TRAILBLAZER-ALZ 2 trial, assessing the efficacy and safety of Kisunla in individuals having early symptomatic Alzheimer’s disease. The participants who were originally treated with Kisunla either continued the treatment or were switched to a placebo. Notably, the ones initially on placebo began Kisunla in a blinded manner.

Eli Lilly and Company (NYSE:LLY) also highlighted that an earlier initiation of Kisunla reduced the risk of progression to the next stage of disease by 27% on Clinical Dementia Rating-Global Score (CDR-G). Notably, in Q2 2025, Eli Lilly and Company (NYSE:LLY)’s net income and EPS came in at $5.66 billion and $6.29, respectively, as compared to the net income of $2.97 billion and EPS of $3.28 in Q2 2024. Furthermore, the EPS in Q2 2025 and Q2 2024 both included acquired IPR&D charges of $0.14. RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q2 2025 investor letter. Here is what the fund said:

“Eli Lilly and Company (NYSE:LLY): LLY shares declined during the quarter despite strong top-line growth, as the company missed earnings expectations and faced heightened scrutiny around GLP-1 pricing dynamics. In Q2, Mounjaro sales rose sharply to $3.8 billion and Zepbound reached $2.3 billion in revenue. However, EPS came in below consensus due to lower pricing and temporary supply disruptions.

The market reacted to news that certain payers were shifting GLP-1 drugs off preferred formularies (insurance companys’ lists of approved drugs), raising concerns about future prescription growth. While the underlying demand remains robust, competitive dynamics and manufacturing constraints led to investor caution. Volatility in the broader weight-loss drug space also contributed to relative weakness.

Despite short-term pricing concerns, we believe Lilly is well positioned for multi-year growth. Its leadership in obesity and diabetes treatments, combined with a promising late-stage pipeline in Alzheimer’s, immunology, and oncology, offers significant upside.”

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Disclosure: None. This article is originally published at Insider Monkey.