Shares of Insulet (PODD) and DexCom (DXCM), two companies that provide medical devices for patients managing diabetes, tumbled Tuesday after a study showed that a popular drug made by Eli Lilly (LLY) significanꦏtly lowers the risk of developing type 2 diabetes.

According to the results of a three-year study, patients with prediabetes who were overweight or obese saw a 澳洲幸运5官方开奖结果体彩网:94% reduction in type 2 diabetes progression risk after taking tirzepatide, the active ingredient in Eli Lilly's injectable weight-loss drug Zepbound and diabetes treatment Mounjaro, compared with a placebo.

Blockbuster Drug Pressures Growth Outlook

The results of Lilly's study demonstrate another benefit of tirzepatide and other drugs known as GLP-1 receptor agonists. While the growing list of positive effects will come as welcome news to many patients, it could be a concern for companies that make products to treat related conditions.

DexCom, which manufactures continuous glucose monitoring (CGM) devices, saw its shares plummet at the end of July after the company 澳洲幸运5官方开奖结果体彩网:slashed its sales guidance for the current quarter and the full year. The company said ﷽the lower forecasts reflected slower-than-expected new customer additions, which could be exacerbated as treatments by Lilly and pharmaceutical rivals reduce diabetes risks.

澳洲幸运5官方开奖结果体彩网:Concerns about user growth have also dragged on insulin pumꦐp maker Insulet in recent weeks. Shares tumbled on Aug. 6 after the company said its growth trajectory could be slower than previously anticipated as fewer patients switch from competing devices, and wider adoption of GLP-1 receptor agonists could add to the headwinds.

Stock Performance

Insulet shares plunged 6.9%% on Tuesday after Lilly publicized the results of the study, marking the weakest daily performance of any stock in the S&P 500. Shares of DexCom were not far behind, falling 6.2% on the day.ღ

Meanwhile, Lilly shares finished 3.1% higher after hitting an all-time intraday high early in Tuesday's trading session.