In two late-stage trials involving patients with obstructive sleep apnea, a condition often linked to obesity, Zepbound demonstrated a remarkable reduction in the frequency of breathing disruptions during sleep. Eli Lilly reported on Wednesday that Zepbound reduced the instances of slowed or stopped breathing during sleep by up to 63%, surpassing expectations set by analysts. The trials, conducted over 52 weeks, also revealed that patients experienced substantial weight loss of approximately 20%.

These promising results have prompted Eli Lilly to share comprehensive findings from the trials at the upcoming American Diabetes Association conference in June. The pharmaceutical giant plans to submit these results to regulatory bodies, including the U.S. Food and Drug Administration (FDA), later this year, aiming for approval to treat sleep apnea.

If approved, Zepbound could potentially revolutionize the landscape of sleep apnea treatment, opening avenues for insurance coverage for patients. Currently, weight loss medications like Zepbound are not covered by Medicare, limiting accessibility for many individuals.

The approval of Zepbound would also position Eli Lilly in direct competition with Novo Nordisk A/S, whose weight-loss drug, Wegovy, recently gained coverage from major health insurers for certain Medicare beneficiaries with heart-related conditions. While Novo Nordisk has hinted at exploring the efficacy of its medications in addressing sleep apnea, it has not yet conducted trials in this regard.

Jeff Emmick, Lilly's senior vice president of product development, emphasized Zepbound's potential as the first pharmaceutical treatment targeting the underlying cause of sleep apnea, distinguishing it from existing treatments that primarily address symptoms such as drowsiness.

The significance of Zepbound extends beyond individual patients to impact companies manufacturing breathing devices, such as ResMed Inc. and Inspire Medical Systems Inc. The potential approval of Zepbound for sleep apnea could lead to a decline in demand for these devices, potentially shrinking the market by more than 11% in the coming years, according to industry analysis.

While Zepbound offers hope for millions suffering from sleep apnea, analysts caution that it may not entirely eliminate the disorder. However, its approval could mark a significant step forward in addressing the complex interplay between obesity and sleep-related breathing disorders, ultimately improving the quality of life for millions of individuals.