Eli Lilly weight loss drug for type-2 diabetes approved by the FDA

Yahoo Finance senior health reporter Anjalee Khemlani details Eli Lilly's type-2 diabetes drug approval by the FDA for use as a weight loss drug.

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SEANA SMITH: All right, well, a possible blockbuster in the fight against obesity. Anjalee Khemlani has that story for us. Anjalee.

ANJALEE KHEMLANI: That's right, Seana. Eli Lilly got their diabetes drug approved by the FDA for use as a weight loss drug, and that gives it a little bit of an edge against and a higher dose of version of the drugs from Novo Nordisk. This drug now showed in some studies to give individuals, especially those taking the higher dose of the drug, a weight loss, as much as 20% of their body weight.

So, that is really causing quite a stir. There is some concern however, about the long-term impacts of that. Some experts have noted that these drugs are used only for a certain period of time. Also, higher dosages tend to result in higher side effects. So, that's also something to work-- to focus on. But on that point of the eventual weaning off of the drug may result in that reduction of that weight loss as well.

So, it could be just a short-term payoff. However, that being said, it is still something new in the arsenal against obesity. And so, this is really where some of the excitement comes on. And of course, you can see Lilly benefiting from that.

- Very fascinating study. Anjalee Khemlani, appreciate that information.