JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, Citi reinforced its positive stance on Eli Lilly (NYSE:LLY) shares, a prominent player in the pharmaceuticals industry with a market capitalization of $682 billion, by maintaining a Buy rating and a $1,250.00 price target for the pharmaceutical company's shares.
According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $580 to $1,250. This outlook follows the announcement of the phase 3 REDEFINE-1 study results from Novo, a competitor in the obesity treatment market. The study's findings showed a 22.7% weight loss efficacy at 68 weeks, falling short of the anticipated 25% target.
Eli Lilly's tirzepatide demonstrated a 20.9% weight loss, and the lower-than-expected results from Novo's study are seen as favorable for Eli Lilly. The analyst from Citi believes this could nearly be the best-case scenario for Eli Lilly, as the market had anticipated stronger results from Novo that might have challenged Eli Lilly's position, particularly among patients with higher body mass index (BMI).
The announcement from Novo did not include discontinuation rates, which are a key factor in treatment adoption. Citi's analyst highlighted that, based on their obesity key opinion leader (KOL) note, doctors and patients prioritize tolerability.
Eli Lilly's tirzepatide has a real-world discontinuation rate of less than 5%, which is an improvement over the clinical study discontinuation rate of approximately 6%.
The analyst concluded that tirzepatide's established tolerability and more than adequate efficacy should enable Eli Lilly to maintain and even expand its market share, despite the slight 2% difference in efficacy compared to Novo's product. The maintained Buy rating and price target reflect confidence in Eli Lilly's market position and the potential for continued growth in the obesity treatment sector.
InvestingPro data supports this outlook, showing impressive revenue growth of 27.4% over the last twelve months and an exceptional gross profit margin of 81%. For deeper insights into Eli Lilly's financial health and growth prospects, including 15+ additional ProTips and comprehensive analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, Viking Therapeutics (NASDAQ:VKTX) has seen a surge in interest following disappointing results from Novo Nordisk (NYSE:NVO)'s obesity drug trial. The trial for Novo's CagriSema resulted in less weight loss than anticipated, leading to a market value loss and benefiting competitors such as Viking Therapeutics, Eli Lilly, Amgen (NASDAQ:AMGN), and Structure Therapeutics.
Jefferies analyst Peter Welford suggested the actual results raise "tolerability concerns" for patients and that consensus expectations for CagriSema sales are "overly optimistic."
Meanwhile, Eli Lilly has been making significant strides, with Bernstein SocGen Group maintaining its Outperform rating for the company. The FDA has confirmed that Lilly's Tirzepatide, marketed under the names Mounjaro and Zepbound, is no longer in shortage.
The company also received approval from China's National Medical (TASE:PMCN) Products Administration for its Alzheimer's treatment Kisunla, marking the fourth major market endorsement.
Furthermore, Eli Lilly and Innovent Biologics have announced an agreement granting Innovent exclusive rights to import, market, distribute, and promote Lilly's cancer drug Jaypirca in Mainland China. This partnership aims to address unmet clinical needs in the treatment of hematologic cancers and expand patient access to innovative therapies.
In the global obesity drug market, Eli Lilly is recognized as a key player, with its weight loss drug Manjaro gaining preference over Novo Nordisk's Wegovy among UK customers. These are some of the recent developments in the journeys of Viking Therapeutics and Eli Lilly.
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