Ukraine proposes $100 bln US weapons deal for security guarantees - FT
Investing.com - UBS maintained its buy rating and $1,050.00 price target on Eli Lilly (NYSE:LLY) Friday, citing the pharmaceutical company’s leadership position in the obesity treatment market. With a market capitalization of $705 billion and impressive revenue growth of 36% in the last twelve months, InvestingPro data shows Eli Lilly as a prominent player in the Pharmaceuticals industry.
The investment bank’s analysis suggests sales estimates for Lilly’s weight-loss medication Zepbound could exceed consensus expectations by approximately 15%, while projections for diabetes drug Mounjaro align with current market forecasts. Overall, UBS anticipates Lilly’s quarterly sales to surpass consensus by 2%. The company’s strong market position is supported by an impressive gross profit margin of 81.7% and robust financial health, according to InvestingPro’s comprehensive analysis.
UBS highlighted Lilly’s recent successes at the American Diabetes Association conference as evidence of the company’s strong positioning in both diabetes and obesity markets. The firm expects these developments to contribute to a robust second-quarter performance as market share gains accelerate.
The upcoming SURPASS cardiovascular outcomes trial remains a key catalyst for Lilly, according to UBS. The bank also noted that CVS Health (NYSE:CVS)’s formulary change, which will prefer Novo Nordisk (NYSE:NVO)’s Wegovy over Zepbound for select plans beginning July 1, could actually provide a short-term benefit to Lilly’s second-quarter results.
UBS indicated that some patients are obtaining three-month supplies of Zepbound ahead of the formulary change, potentially creating a $50 million sales tailwind for the second quarter, though this would become a headwind in the third quarter when the change takes effect.
In other recent news, Eli Lilly has 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. This announcement is part of the company’s regular financial operations. Additionally, Eli Lilly has entered into a definitive agreement to acquire Verve Therapeutics for up to $1.3 billion, including a contingent value right component. BMO Capital has downgraded Verve Therapeutics from Outperform to Market Perform following the acquisition announcement.
Meanwhile, Eli Lilly’s clinical trial results for bimagrumab, a non-GLP weight loss treatment, showed a 10% weight loss, with Evercore ISI maintaining its In Line rating on the company. BMO Capital has reiterated its Outperform rating on Eli Lilly, highlighting developments in the company’s metabolic portfolio, including advancements in its oral GLP-1 asset, naperiglipron. Truist Securities has also maintained a buy rating on Eli Lilly, focusing on the company’s oral diabetes drug, orforglipron, despite some safety concerns about liver enzyme elevations. The firm believes these concerns may be overstated and views the drug’s risk/benefit profile positively for Type 2 diabetes treatment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.