Key Points

• Eli Lilly made a move that could help address a drawback of its anti-obesity medicines.

• This could help it fend off mounting competition in this fast-growing area.

• Lilly's business extends far beyond this highly lucrative market.

• 10 stocks we like better than Eli Lilly ›

Eli Lilly (NYSE: LLY) is one of the undisputed leaders in the fast-growing market for weight-management medicines. Following recent clinical wins, the company may even be taking the lead ahead of its only real competitor in the field, Novo Nordisk.

However, Lilly is not taking its foot off the pedal; it just made a move that could improve its already solid position in this space. Let's figure out whether this new development makes the company's shares even more attractive.

Long-acting weight-management drugs

There is no questioning the efficacy of Eli Lilly's Zepbound, its leading weight-management medicine. The therapy posted excellent results in clinical trials, and has now been in use in real-world settings long enough to confirm its clinical profile.

However, the treatment is administered via subcutaneous injection once weekly. Furthermore, evidence suggests that the medicine's efficacy wanes after people stop taking it, and they often regain much of the weight they had lost. So for optimal benefits, it's best to stay on the drug for a while, which is bothersome considering the dosing schedule of weekly injections.

Weight-management leaders like Eli Lilly have been seeking a solution to this problem, and the healthcare specialist may have made an important step in that direction. On June 3, Camurus, a Sweden-based pharmaceutical company, announced that it had signed a deal to provide Lilly its proprietary FluidCrystal technology, designed for the long-acting delivery of medicines.

Camurus' technology can deliver therapies for days to months, thanks to a lipid solution injected with a syringe or autoinjector pen, which slowly releases the drug once it comes in contact with bodily fluids or body tissue. Eli Lilly will seek to use this tech with up to four of its GLP-1 medicines. The pharmaceutical giant will pay Camurus $290 million up front, with potential additional payments of up to $580 million in clinical, regulatory, and sales milestones, as well as royalties.

Plenty of reasons to buy the stock

If Eli Lilly can incorporate Camurus' FluidCrystal technology, its GLP-1 medicines might no longer need once-weekly dosing. That should make them more attractive and boost their already impressive sales.

Of course, there is more work to be done with this project, but it's worth pointing out that Lilly has already found another solution (of sorts) for this issue. The company recently reported positive phase 3 clinical trial results for orforglipron, an investigational GLP-1 medicine. Orforglipron is taken orally once a day -- a far better option for many patients. Eli Lilly continues to find ways to fend off the increasingly stiff competition in this market.