Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Wednesday, Bernstein analysts maintained their Outperform rating and $1,100 price target on Eli Lilly shares (NYSE:LLY), highlighting the pharmaceutical company’s increasing market share in the GLP-1 sector. According to InvestingPro data, analyst targets for LLY range from $650 to $1,190, with a strong consensus recommendation of 1.79 (Buy). The company’s market capitalization stands at $670 billion, making it a dominant player in the pharmaceutical industry. The analysts observed a year-over-year surge of 61.8% in total GLP-1 prescriptions for the week ending April 25, despite a slight 0.8% decline from the previous week.
Eli Lilly’s market share, which includes semaglutide and tirzepatide, climbed to 52.4%, up from 52.1% the week before. This growth is seen as a continuation of the company’s market leadership in this space. The increase was attributed to gains in shares for Mounjaro, rising to 32.0% from 31.9%, and Zepbound, which increased to 20.4% from 20.2%.
The analysts pointed out that while the total market shares saw more moderate changes last week, the latest figures favor Eli Lilly. The company’s tirzepatide growth, in particular, was impressive with a 136% increase year over year, significantly outpacing the 1.6 times supply expansion that Eli Lilly has projected. This growth contributes to the company’s robust 36.4% year-over-year revenue increase. InvestingPro analysis shows the company maintains a GOOD overall financial health score, with particularly strong marks in profitability and growth metrics.
Furthermore, the data emphasized the importance for Novo Nordisk (NYSE:NVO) to negotiate formulary access for its product Wegovy with CVS, as the company experienced some of the lowest script growth to date, with Ozempic growing 5% year over year and Wegovy 33%.
Eli Lilly’s continued dominance in the market share for GLP-1 medications, especially with products like Mounjaro and Zepbound, underscores the company’s solid position in the sector. The maintained Outperform rating and price target reflect Bernstein’s positive outlook on Eli Lilly’s performance in the competitive pharmaceutical market. InvestingPro subscribers can access 14 additional ProTips about LLY, including insights about its dividend history, profitability metrics, and comprehensive valuation analysis through the exclusive Pro Research Report, available for over 1,400 top US stocks.
In other recent news, Eli Lilly has made significant strides with multiple developments. The company announced an expansion of its partnership with Purdue University, committing up to $250 million over the next eight years to enhance drug development and the pharmaceutical supply chain. This initiative, known as the Lilly-Purdue 360 Initiative, aims to integrate artificial intelligence and advanced manufacturing technologies. Additionally, Eli Lilly has undergone executive leadership changes to bolster growth in its U.S. and cardiometabolic health sectors, with Ilya Yuffa and Patrik Jonsson taking on new roles to drive these efforts.
In a separate legal matter, a U.S. federal judge upheld the FDA’s decision to remove Eli Lilly’s weight loss and diabetes drugs, Zepbound and Mounjaro, from a shortage list, impacting compounding pharmacies. This ruling follows a lawsuit filed by a compounding industry group against the FDA’s directive. Moreover, Bernstein analysts maintained their Outperform rating for Eli Lilly, with a price target of $1,100, following President Trump’s Executive Order on Most Favored Nation Drug Pricing. The analysts highlighted the positive tone towards the pharmaceutical industry and Eli Lilly’s advantageous position due to its investments and strong relationship with the administration.
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