Friday – BofA Securities maintained a Buy rating on Eli Lilly stock (NYSE:), with a price target set at $997.00. With a market capitalization of $706 billion and impressive revenue growth of 27.4% over the last twelve months, Eli Lilly continues to demonstrate strong market presence. According to InvestingPro data, the company maintains a robust financial health score of “GOOD” and boasts an industry-leading gross profit margin of 80.9%. The positive stance comes amid recent developments in the pharmaceutical industry, where competitor Novo Nordisk (NYSE:) (NYSE:NOVO) released preliminary data from a phase 1/2a study of a new weight loss drug.
The study involved 125 participants with overweight or obesity issues and tested a drug called subQ amycretin. This medication is designed to target both GLP-1 and amylin receptors. According to the data, a weight loss of 22% at 36 weeks was observed with the highest dose of 20mg, assuming full adherence to the treatment. This result aligns with the expectations set by Novo Nordisk, aiming to match or surpass the efficacy of its other drug, CagriSema, which reported a 22.7% weight loss at 68 weeks.
The announcement from Novo Nordisk was noted as lacking in detail by BofA Securities, with no specific information on the tolerability of the drug, dropout rates, or the progression of weight loss over time. These factors are considered crucial for a comprehensive assessment of the drug’s potential.
Eli Lilly’s stock rating affirmation by BofA Securities indicates confidence in the company’s performance, despite the competitive landscape. The full data on Novo Nordisk’s study is anticipated to be presented at the American Diabetes Association (ADA) meeting in June, which will provide further insights into the drug’s profile and its implications for the market.
Investors and industry watchers are now looking forward to the ADA meeting for a more detailed understanding of Novo Nordisk’s new drug and its potential impact on Eli Lilly’s market position. The developments in this sector are closely monitored, as companies continue to innovate in the fight against obesity. While trading at a P/E ratio of 84.5, InvestingPro analysis suggests the stock is currently overvalued, though analysts maintain a strong buy consensus. For deeper insights into Eli Lilly’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering over 1,400 top US stocks.
In other recent news, pharmaceutical giants Eli Lilly and Novo Nordisk have seen significant developments. Eli Lilly’s Q4 revenue fell short of expectations due to weaker sales from its Mounjaro and Zepbound portfolio. However, BMO Capital Markets sees potential for the company to outperform expectations through effective commercial strategies and upcoming product launches. In addition, Eli Lilly has received FDA approval for Omvoh, a drug designed to treat adults with moderately to severely active Crohn’s disease.
On the other hand, Novo Nordisk has seen promising trial results for its obesity treatment, amycretin, which showed a significant weight loss in participants, outpacing Eli Lilly’s own drug in early comparisons. This development has put pressure on Eli Lilly, whose shares fell as the market reacted to the potential challenge to its obesity drug, Zepbound.
BofA Securities maintained a Buy rating on Novo Nordisk, expressing confidence in the company’s future performance and competitive landscape. Leerink Partners and Bernstein analysts have also maintained an Outperform rating on Eli Lilly, emphasizing the market potential of the company’s drug tirzepatide and its strong financial health.
These are recent developments in the pharmaceutical industry, highlighting the competitive landscape and advancements in obesity treatment.
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