Street Calls of the Week
Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $925.00 price target on Eli Lilly (NYSE:LLY), a prominent player in the pharmaceuticals industry with an "GREAT" financial health rating according to InvestingPro, after the company’s oral GLP-1 drug orforglipron was not included in the first batch of medications to receive Commissioner’s National Priority Vouchers (CNPV).
The White House and FDA announced the first nine drugs selected for CNPVs during a joint media conference Thursday afternoon, with Eli Lilly’s orforglipron notably absent from the list.
Eli Lilly shares experienced pressure in after-hours trading following the announcement, which Cantor Fitzgerald attributed to "recent unrelenting speculation of a potential CNPV for orforglipron and some overly optimistic hopes for approval by YE25."
The announcement came amid what the research firm described as "vague and at times contradictory GLP-1 pricing commentary," apparently referring to ongoing negotiations regarding semaglutide pricing under the Inflation Reduction Act that could reach $150 per month or lower.
Cantor Fitzgerald noted that the pricing dynamic may weigh more heavily on Eli Lilly shares than the CNPV exclusion, as investors had previously anchored expectations around the mid-$200s for IRA-negotiated semaglutide pricing.
In other recent news, Eli Lilly and Company reported significant advancements in their diabetes treatment with orforglipron, showing superior blood sugar control in Phase 3 trials compared to existing treatments. The ACHIEVE-2 trial demonstrated a 1.7% reduction in A1C levels, while the ACHIEVE-5 trial showed a 2.1% reduction when combined with insulin glargine. Additionally, Eli Lilly’s ulcerative colitis treatment, Omvoh, exhibited sustained efficacy over four years, with 80% of patients maintaining remission. In the realm of stock analysis, Erste Group upgraded Eli Lilly to a Buy rating after the company posted strong first-half results and raised its full-year 2025 guidance. Guggenheim also raised its price target for Eli Lilly to $948, maintaining a Buy rating, and anticipates slightly higher third-quarter Mounjaro sales than the consensus estimate. Furthermore, Eli Lilly is set to present crucial survival data for Verzenio in early breast cancer at the upcoming ESMO Annual Meeting. These developments highlight Eli Lilly’s ongoing progress in treatment efficacy and financial performance.
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