Why did Eli Lilly's stock beat Granite today while ResMed and AdaptHealth sank?

For the biotechnology and pharmaceutical industries, what happens in the lab is critical to success (or failure).

Wednesday.come with a giftfirms(NYSE: LLY)Good news from one of the clinical trials of the drugmaker has pushed the pharma giant's stock price up (by 0.5%), leaving several competitors in the dust. These include equipment makerResMed (ResMed) (NYSE: RMD)), its share price fell by 6%;AdaptHealth (NASDAQ: AHCO)Down nearly 2%.

A very useful molecule.

Ahead of rock bottom, Eli Lilly announced that its molecular drug tirzepatide has reached the primary endpoint in a set of Phase III clinical trials. The studies were designed to determine the efficacy of the drug in treating obstructive sleep apnea (OSA), a common condition in which patients have difficulty breathing during sleep.

The company said that compared to placebo, tiotropium has been shown to significantly reduce the Apnea Hypopnea Index (AHI), which measures how often a patient's breathing is restricted or impaired and is considered an important indicator of the severity of the condition.

Tirzepatide is the basis for Mounjaro and Zepbound, the FDA-approved diabetes and weight-loss drugs from the pharmaceutical giant. These two drugs are closely related toNovo NordiskThe popular Ozempic, like Wegovy, also appears to have properties for treating other diseases. Both Lilly and Novo Nordisk are actively investigating these properties.

Lilly's good news hasn't gone down well with investors in companies that specialize in sleep apnea pauses. ResMed)The company is particularly vulnerable because it focuses on sleep apnea andChronic Obstructive Pulmonary Disease (COPD)AdaptHealth is also active in these areas.

Lilly's press release touting the results of its tiotropium research stated that 80 million adults in the U.S. suffer from at least moderate OSA; however, 85% of such cases go undiagnosed, so many patients go untreated.

The company quoted its Senior Vice President of Product Development, Jeff Emmichron, as saying, "It is critical to address this unmet need, and while there are currently medications available to treat the excessive sleepiness associated with OSA, tiopeptide has the potential to be the first medication to treat the underlying disease.

This is just the beginning.

In addition to diabetes and obesity, we are studying the role of molecules like tizipatide and semaglutide (the drugs underlying Ozempic and Wegovy) in treating other diseases. If any drug company is going to discover potentially lucrative new treatments, it's well-capitalized, cash-rich Eli Lilly. Investors in much smaller competitors are rightly worried.

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Eric Volkman does not own any of the stocks listed above. the Motley Fool holds a recommendation for ResMed. the Motley Fool recommends Novo Nordisk. the Motley Fool has a disclosure policy.

Why did Eli Lilly's stock beat the broader rock today while ResMed and AdaptHealth dipped?