Benzinga - by Vandana Singh, Benzinga Editor.
Citi Research has increased the price target for Eli Lilly And Co (NYSE:LLY), reflecting increased anticipated risk-adjusted peak sales for the company’s oral small molecule GLP-1 agonist orforglipron as a mono/fixed-dose combination.
The analyst noted that the risk of drug-related liver toxicity is decreasing, with Phase 3 trials ongoing since 2023. Considering the potential peak sales of incretin drugs exceeding $85 billion for Eli Lilly, Citi says it is closely monitoring competitive threats to Eli Lilly and Novo Nordisk A/S’s (NYSE:NVO) market dominance.
Related: Eli Lilly’s Commercial Moat, Competitor Landscape: BofA Emphasizes Strength in Incretin Space, Undervalued Assets.
With a Buy rating, the analyst has increased the price target from $675 to $895. Valuation ranges from $611 to $1,069 based on various assumptions regarding incretin sales forecasts.
Generic versions of semaglutide are expected to flood the market in China in the near future and Western markets after 2032, with several manufacturers scaling up production.
Additionally, legislative proposals to eliminate pharmacy benefit manager rebates could impact competition.
Despite these risks, Eli Lilly and Novo Nordisk are positioned to maintain their market leadership and expand.
The FDA’s website indicates that Eli Lilly’s diabetes drug Mounjaro (tirzepatide) will face tight supply until 2024 due to high demand.
The doses of 7.5, 10, 12.5, and 15 milligrams are limited until April, while lower doses are available.
Initially, three doses were expected to have limited availability until early March.
Reuters noted that Lilly is still producing and shipping all Zepbound doses, but unprecedented demand may cause difficulties for some patients in filling their prescriptions.
Read Next: Novo Nordisk, Eli Lilly Stride To Boost Supply Shortage For Newly Found Holy Grail Of Miraculous Weight Loss Drugs.
Price Action: LLY shares are up 0.37% at $763.36 on the last check Tuesday.
Photo by rafapress on Shutterstock
Latest Ratings for LLY
| Feb 2022 | Morgan Stanley | Maintains | Overweight | |
| Feb 2022 | Mizuho | Maintains | Buy | |
| Jan 2022 | Morgan Stanley | Maintains | Overweight |
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.