RMD is sharply lower amid LLY's FDA buzz
Eli Lilly and Co (NYSE:LLY) is in focus today, after the U.S. Food & Drug Administration (FDA) approved its weight-loss drug, Zepbound, to treat obstructive sleep apnea in adults with obesity -- the first such treatment in the country. LLY is up 1.7% at $480.55 at last glance, while shares of rival ResMed Inc (NYSE:RMD), which creates continuous positive airway pressure (CPAP) devices for sleep apnea, was last seen down 5% at $225.44 after the news.
On the charts, LLY posted a much-needed rebound last session, marking its second gain in 10 trading days after bouncing off the 320-day moving average. This came amid Novo Nordisk (NVO) stock's plummet after the pharma name's weight-loss drug CagriSema missed expectations of a late-stage study. Eli Lilly stock has been volatile since its late-October bear gap, which it has yet to recover from, up 33.2% since the start of the year.
RMD is trading at its lowest levels since late August, though the 180-day moving average, which captured its June pullback, lingers below as potential support. The shares are further removing themselves from their Oct. 25 two-year high of $260.49. Year to date, the equity is up 30.9%.