After the collapse in diet drug trials triggered the biggest single-day collapse in 20 years, many LLY.US (LLY.US) executives slashed the bottom of 2.9 million dollars

The Zhitong Finance App learned that David Reeks, CEO of LLY.US (LLY.US), and other executives recently spent nearly $2.9 million to collectively increase their holdings of the company's shares. Previously, the pharmaceutical company experienced a sharp drop in stock prices due to phase III clinical trial data of the oral diet drug orforglipron falling short of expectations and a rare sell-off last week.

Wall Street was disappointed with the mid-term results of the company's Phase 3 ATTAIN-1 clinical trial on the oral GLP-1 receptor agonist Orforglipron, causing Lilly's stock price to plummet by about 14% last Thursday, the biggest one-day decline in more than 20 years.

But this round of sell-offs created a rare opportunity for insiders to raise funds at low prices. According to US Securities and Exchange Commission (SEC) disclosure documents, CEO Rix bought approximately 1,600 Eli Lilly shares at an average price of $644.77 per share on Tuesday, with a transaction value of over $1 million.

Executives who revealed an increase in their holdings on the same day also included Chief Scientific Officer Dan Skovronski, who increased his holdings by 1,000 shares at an average price of $634.41. Board members Gabrielle Suzberg and Eric Freiwald bought a total of about 1,700 shares with a total value of over $1 million, and their respective holdings increased by about 5% and 2%, respectively. Another director, Jamil Jackson, took the lead in increasing his holdings, spending $127.96 million to buy 200 shares, increasing his holdings by about 2%.

Meanwhile, Eli Lilly's US President Ilya Jufa did the opposite on Monday, selling about 1,300 shares of the company for 783,800 US dollars, reducing her holdings by about 5%.

The deal comes at a time when changes in Eli Lilly's stock price are drawing attention on Wall Street. Haggerston BioHealth portfolio manager Edmund Ingleham called the pullback a “rare buying opportunity for long-term investors,” but Crude Value Insights portfolio manager Daniel Jones believes that the stock has limited upside for the same type of investor group.