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Investing.com - TD Cowen has reiterated a Buy rating and $960.00 price target on Eli Lilly (NYSE:LLY), a prominent player in the pharmaceuticals industry with a market cap of $652 billion, following the company’s release of Phase III trial results for orforglipron in patients with obesity and type 2 diabetes. The company’s stock currently trades at $727.51, with analyst targets ranging from $650 to $1,190. InvestingPro data shows 11 analysts have recently revised their earnings expectations upward for the upcoming period.
The ATTAIN-2 trial showed that at 72 weeks, the highest dose of orforglipron achieved weight loss of 9.6% and A1C reduction of 1.8%, with discontinuations at 10.6%.
According to TD Cowen, these weight loss and A1C reduction results were comparable to semaglutide but fell short of tirzepatide’s performance in similar patient populations.
The firm noted that discontinuation rates for the drug were "above ideal bar," suggesting potential tolerability concerns for the oral obesity treatment.
TD Cowen has updated its model for Eli Lilly based on these clinical results, while maintaining its positive outlook on the stock with the unchanged price target of $960.00.
In other recent news, Eli Lilly announced strong results from its Phase 3 ATTAIN-2 trial of the oral GLP-1 receptor agonist orforglipron. The trial, which included adults with obesity or overweight and type 2 diabetes, showed that participants taking the highest dose lost an average of 22.9 pounds over 72 weeks. This success is paving the way for global regulatory submissions this year. Additionally, a research note from William Blair highlighted the unexpectedly strong performance of orforglipron in this higher-risk patient population. BofA Securities reiterated its Buy rating on Eli Lilly, citing exceptional growth potential and a projected revenue growth of 35% in 2025. This projection significantly outpaces the industry average of 4% across U.S. and European companies. Furthermore, Eli Lilly has entered into a clinical supply agreement with Immuneering Corp to support a Phase 2 clinical trial. The study will evaluate a combination therapy for patients with KRAS G12c-mutant non-small cell lung cancer.
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