Eli Lilly & Co.'s (NYSE:LLY) price target was raised to $507 from $478 by Morgan Stanley analysts, who reiterated an Overweight rating on the stock in a note Monday.
They raised the price target following LLY's recent Ph3 Alzheimer's data, with the analysts stating they see room in the market for Dmab and BIIB/Eisai's Leqembi but "still expect Leqembi to garner more share than Dmab."
"LLY recently reported positive top-line data from the Ph3 TRAILBLAZER-ALZ 2 trial of Donanemab (Dmab; antibody to a-beta) in early symptomatic Alzheimer's," explained the analysts.
"In our view, these data provide additional validation of the a-beta hypothesis for Alzheimer's disease and should bolster physician confidence ahead of the potential launches of both BIIB/Eisai's Leqembi and LLY's Donanemab."
They added that investors are trying to compare across trials to determine how relative profiles might drive respective market share.
However, they see room in the multi-billion dollar market for both drugs but expect Leqembi to garner more share due to factors including efficacy, safety, and dosing.