Eli Lilly

We lift our target to $940 from $930, reflecting a 49.1x multiple on our 2025 EPS, above LLY’s historical forward P/E average. We keep our 2024 EPS estimate at $14.05 and 2025’s at $19.14. The recently shared data from the Phase 2 study of Tirzepatide to treat Mash, a serious fatty liver disease, showing efficiency in patients receiving different doses of the therapy vs. the placebo without worsening fibrosis, is positive and could support the potential for indication expansion, in our view. On a separate note, LLY announced the departure of its CFO, A. Ashkenazi, who held the role since 2021 and spent 23 years at LLY. Ashkenazi will join Alphabet as the new CFO in July 31, while LLY starts to look for a replacement. We are not concerned about the leadership change at this point, as Ashkenazi will hold the role until the end of July and LLY […]

We lift our target price to $930 from $906, reflecting a 48.6x multiple on our 2025 EPS, above LLY’s historical forward P/E average, justified by LLY’s strong sales and earnings growth outlook in the next years. We lift our 2024 EPS view to $14.05 from $13.54 and 2025’s to $19.14 from $16.59 as we expect solid margin expansion. We updated our model and raised our revenue forecasts for 2024 and 2025 to $43.6B and $53.1B, respectively, pointing to 28% Y/Y and 22% Y/Y increases. We continue to see high top-line sales growth led by robust growth in Tirzepatide revenues (Mounjaro +Zepbound) both in the U.S. and internationally during 2024 and 2025, which we expect to be above $14B and $23B, respectively. We think the recently announced $9B manufacturing investment in Indiana, the largest in the firm’s history, to expand the manufacturing capacity for the active pharmaceutical ingredients in Tirzepatide products,

Novo Nordisk’s (NVO) Wegovy and Eli Lilly’s (LLY) Mounjaro had their prices lowered by British online pharmacies and slimming clinics as supply shortages ease after the drugs’ recent launch, Reuters reported Thursday. Rising competition among retailers for weight-loss drugs increases risks of patients losing long-term care by switching providers, rather than relying on the National Health Service. Self-paying patients drive significant revenue for Wegovy and Mounjaro, the report said. Analysts foresee a potential $100 billion annual market for these drugs, prompting aggressive efforts by drug retailers to attract customers, Reuters said. Lilly told Reuters that it has not adjusted its prices, while Novo explained that pricing is determined by the providers delivering the drugs to patients. The NHS didn’t respond to Reuters’ request for comment.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target price to $906 from $885, reflecting 54.6x our 2025 EPS, justified by LLY’s robust growth outlook. We lift our 2024 EPS estimate to $13.54 from $12.50 and 2025’s to $16.59 from $15.53. LLY posted Q1 EPS of $2.58 vs. $1.62, a remarkable +59% Y/Y, $0.09 above the consensus as gross margin expansion was above expectations (82.5% in Q1 2024 vs. 78.4% in Q1 2023). Q1 revenues, up by an eye catching 26% Y/Y, were $162M below consensus estimates and $230M below our forecast as sales of Mounjaro ($1.8B) and Zepbound ($517M) were slightly lower than anticipated. Yet, LLY raised its 2024 sales guidance by $2B as it expects the strong demand for Mounjaro and Zepbound to continue and has improved visibility to boost

Eli Lilly & Co. is one of the most mentioned companies in the U.S. across all news items in the past 12 hours, according to Factiva data. The company reported first-quarter financial results and said demand for its weight-loss drugs, including Zepbound, and for diabetes-drug Mounjaro were strong. The company plans to expand manufacturing capacity to meet demand, The Wall Street Journal reported. Dow Jones & Co. owns Factiva.

Tuesday, Eli Lilly And Co (NYSE:LLY) reported first-quarter revenue of $8.77 billion, up 26% year over year, marginally missing the consensus of $8.92 billion, driven by increases of 16% in volume and 10% due to higher realized prices. Eli Lilly posted an adjusted EPS of $2.58, beating the consensus of $2.46, higher than $1.62 a year ago. Goldman Sachs writes that Eli Lilly reported somewhat of a mixed quarter. Topline underperformance was driven primarily by lower-than-expected Mounjaro sales ($1.8 billion vs. GS/Consensus of $2.4 billion/$2.1 billion). Additionally, there was a miss by several in-line products (Trulicity -12%/-12% vs. GS/Consensus, Verzenio -2%/-3% vs. GS/Consensus, Taltz -2%/-7% vs. GS/Consensus). Goldman Sachs writes that Zepbound sales exceeded consensus expectations ($517 million vs. GS/Consensus of $500 million/$390 million, respectively). Goldman highlighted that progress on bolstering supply for incretin products and expected growth trajectory for 2024 should be a focus for the investor call. Also, any insight into

The following is a summary of the Eli Lilly and Company (LLY) Q1 2024 Earnings Call Transcript: Financial Performance: Eli Lilly reported Q1 revenue growth of 26% with new products contributing nearly $1.8 billion. Gross margin as a percent of revenue increased to 82.5% in Q1 2024, up from 78.4% in Q1 2023. The company delivered an EPS of $2.58 in Q1 2024, a 59% increase compared to Q1 2023. Full-year revenue outlook has been raised to between $42.4 – $43.6 billion. Business Progress: Eli Lilly continues to invest in the launch and development of new medicines, with positive results for Phase 3 trials for tirzepatide. Expansion of the company’s manufacturing capabilities is underway, including acquiring an injectable medicine facility and establishing a new manufacturing site in Germany. Discussions with the FDA are ongoing regarding the potential benefits of tirzepatide treatment for Non-Alcoholic Steatohepatitis (NASH), obesity, and other metabolic-related diseases.

Citigroup analyst Andrew Baum maintains Eli Lilly and Co with a Buy and raises the price target from $675 to $895.

Truist Securities analyst Robyn Karnauskas reiterates Eli Lilly and Co with a Buy and maintains $850 price target.

JP Morgan analyst Chris Schott maintains Eli Lilly and Co with a Overweight and raises the price target from $775 to $850.

Eli Lilly and Company’s (LLY) phase 3 clinical trial of tirzepatide in obstructive sleep apnea is likely to miss consensus expectations given the gender imbalance in the study, but could still meet study endpoints, UBS said in a note Thursday. The investment bank said it expects a 12% to 14% weight loss and a 30% to 37% reduction in the apnea-hypopnea index, or AHI, compared with the Street consensus for 20% weight loss and over 50% AHI reduction from baseline. “We think gender imbalances are the main culprit as it’s well-documented females disproportionately lose more weight than males,” UBS said in the note. Males make up 70% of the trial participants, while females account for the remaining 30%, according to the note. The firm maintained its buy rating on the company’s stock with a 12-month price target of $910.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We add Eli Lily and Company (LLY) to CFRA’s High-Quality Capital Appreciation Portfolio. LLY is one of the largest U.S. drug makers in terms of revenue and is a leading developer of drugs in a wide range of therapeutic areas such as endocrinology, which includes a diabetes drug portfolio that generates more than half of its total revenue. We are increasingly optimistic on LLY’s many ongoing efforts, including late-stage therapies such as donanemab (for Alzheimer’s disease), pirtobrutinib (for certain forms of leukemia and lymphoma), and tirzepatide (for sleep apnea and cardiology). Such innovation could complement LLY’s 10 key current drugs, which represent the majority of LLY’s total sales. LLY replaces CVS Health Corporation, which was downgraded to a Hold recommendation.