Eli Lilly stock holds steady as Evercore maintains In Line rating

Published 23/06/2025, 17:06
© Reuters.

Investing.com - Evercore ISI maintained its In Line rating on Eli Lilly (NYSE:LLY), a pharmaceutical giant with a market capitalization of $688.65 billion and impressive revenue growth of 36.38% over the last twelve months. The rating follows the release of clinical trial results for bimagrumab, a non-GLP weight loss treatment. According to InvestingPro analysis, Eli Lilly maintains a "GREAT" financial health score, positioning it well for continued research and development initiatives.

The trial showed bimagrumab achieved 10% weight loss, which Evercore described as surprisingly positive. The data revealed early muscle gain that tapered off, with semaglutide monotherapy showing -7% lean mass by trial end compared to -3% for the semaglutide-bimagrumab combination.

Safety concerns emerged in the trial, including muscle spasms, diarrhea, acne, and elevations in liver enzymes and LDL cholesterol. Evercore noted these issues appeared to be dose-related, occurring with the quarterly intravenous doses of 10 mg/kg and 30 mg/kg used in the study.

Eli Lilly has initiated a new study combining tirzepatide with bimagrumab using weekly subcutaneous administration rather than quarterly intravenous dosing. This change in administration method could potentially result in significantly lower maximum concentration levels.

According to Evercore’s discussions with experts at the American Diabetes Association conference, the weekly dosing approach might reduce maximum concentration by 5-10 fold compared to the quarterly doses, which could substantially improve the safety profile of the combination therapy.

In other recent news, Eli Lilly announced a quarterly dividend of $1.50 per share for the third quarter of 2025, payable on September 10 to shareholders of record as of August 15. BMO Capital reiterated its Outperform rating on Eli Lilly, highlighting developments in the company’s metabolic portfolio, including advancements in its oral GLP-1 asset, naperiglipron, and a promising oral triple G agonist. Truist Securities maintained its buy rating on Eli Lilly, following the presentation of its diabetes drug, orforglipron, at the American Diabetes Association conference, addressing safety concerns and emphasizing a favorable risk/benefit profile. Cantor Fitzgerald also reiterated its Overweight rating, focusing on Eli Lilly’s weight loss drug pipeline, particularly the amylin receptor agonist, eloralintide, and its potential advantages. Additionally, the American College of Cardiology recommended wider use of weight-loss drugs, including Eli Lilly’s Zepbound, as a first-line defense against heart disease, signaling a shift from previous guidelines that prioritized lifestyle changes. This recommendation may influence insurance coverage and increase adoption of these medications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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