Index falls as earnings results weigh; pound above $1.33, Bodycote soars
Bernstein SocGen Group reiterated an Outperform rating and $1,100.00 price target on Eli Lilly (NYSE:LLY) stock Monday, citing continued strong performance of its weight loss medication Zepbound. According to InvestingPro data, Eli Lilly, currently trading at $819.36, shows strong momentum with a 6.54% year-to-date return. The company maintains an impressive "GREAT" Financial Health score, supported by robust revenue growth of 36.4% in the last twelve months.
Total (EPA:TTEF) GLP-1 prescriptions increased 11.6% for the week ending June 6, reaching all-time highs after a decline the previous week, according to the research firm. Zepbound prescriptions showed particularly strong momentum, with new prescriptions growing 23% compared to 15% for competitor Novo Nordisk (NYSE:NVO)’s Wegovy. This growth aligns with Eli Lilly’s impressive 81.7% gross profit margin and projected 32% revenue growth for the current fiscal year.
Novo Nordisk continues to lose market share and year-over-year growth, reaching its lowest share and growth rate in over a year, the firm noted. This decline persists despite Novo’s $199 monthly promotional pricing for Wegovy that should be reflected in the IQVIA prescription data.
The research firm highlighted that new-to-brand prescriptions for Zepbound in just the vial format now exceed total new starts for Wegovy, based on commentary from Eli Lilly. This suggests Zepbound’s growth trajectory remains robust against its primary competitor.
GLP-1 medications, which include both Zepbound and Wegovy, have seen surging demand as treatments for obesity and diabetes, creating both opportunities and supply challenges for pharmaceutical manufacturers in this rapidly expanding market segment. InvestingPro analysis indicates Eli Lilly is currently trading above its Fair Value, though analysts maintain a bullish consensus with price targets ranging from $650 to $1,190. For deeper insights into Eli Lilly’s valuation and growth prospects, including 13 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Eli Lilly and Company announced that its obesity medication Zepbound will be available at a reduced price of $499 per month for the highest approved doses through its Self Pay Journey Program. This change is aimed at increasing accessibility to the medication, which has shown promising results in weight loss during clinical trials. Meanwhile, Bernstein SocGen Group reiterated an Outperform rating for Eli Lilly, highlighting the company’s upcoming data presentations at the American Diabetes Association’s 85th Annual meeting. UBS also maintained its Buy rating on Eli Lilly, noting the impact of the recent launch of single-use tirzepatide vials on patient practices. UBS analysts are closely monitoring the potential implications of a CVS formulary change favoring Wegovy over Zepbound, which could affect market dynamics. Additionally, UBS is focused on the anticipated results of the Phase 3 SURPASS-CVOT trial comparing Mounjaro to Trulicity in type 2 diabetes patients, which could influence Eli Lilly’s market access and pricing strategies. These developments reflect the ongoing interest and analysis from investment firms regarding Eli Lilly’s strategic positioning and product offerings.
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