Positive Outlook for Eli Lilly

Eli Lilly has been performing exceptionally well, and according to UBS analyst Colin Bristow, the stock is expected to rise further by approximately 16% in the coming months. With a steady stream of positive news and accelerated revenue growth, Eli Lilly presents the “best fundamental story” among U.S. large caps. Bristow recently raised his price target for the stock from $526 to $612. Year to date, Eli Lilly shares have already gained an impressive 47%, largely due to high expectations for weight loss drug sales.

A Stocked Pipeline of Promising Drugs

Eli Lilly has several drugs in the pipeline that are generating significant attention and could act as catalysts for stock growth. The Food and Drug Administration is expected to approve Mounjaro as an obesity treatment and donanemab for Alzheimer’s disease by the end of this year. Additionally, there are other potential approvals on the horizon: mirikizumab for ulcerative colitis by the European Union and resubmission in the U.S., lebrikizumab for atopic dermatitis in the fourth quarter, Jaypirca for chronic lympocytic leukemia by year-end, and data on Verzenio for prostate cancer. By 2024, Eli Lilly aims to submit data for a cell therapy for type 1 diabetes. Furthermore, the phase 2B study of bimagrumab for obesity and overweight patients without type 2 diabetes is expected to yield top-line results by mid next year.

Eli Lilly’s recent acquisition plans have also boosted investor confidence. The company announced its intention to acquire Versanis, the developer of bimagrumab. Bimagrumab, a monoclonal antibody, is expected to help patients lose weight without eroding muscle mass – a highly sought-after treatment for obesity and overweight individuals.

Positive Market Potential

Eli Lilly’s obesity treatment, Mounjaro, has experienced a surge in potential market size due to Novo Nordisk’s Select trial results. This study, which is yet to be peer-reviewed, revealed a 20% reduction in cardiac events like stroke and heart attack when patients took Novo’s semaglutide. Analysts anticipate that this study will encourage health insurers to include coverage for weight loss drugs, ultimately benefiting Eli Lilly. Bristow now forecasts peak sales of Mounjaro to reach $40.8 billion, up from $35.8 billion, with potential for further growth if the drug receives additional indications such as renal treatment.

Bristow identifies the key near-term risk for Eli Lilly as supply availability. However, he believes that this is a high-quality problem that the company is effectively managing.

Overall, Eli Lilly’s strong product pipeline, positive market potential, and remarkable growth projections make it an attractive investment opportunity.

— AsumeTech’s contributed reporting.