Eli Lilly & Co: Market Underestimates Sales Potential of New Drugs

Eli Lilly & Co Receives Strong Buy Rating and Price Target Increase

Indianapolis-based pharmaceutical company, Eli Lilly & Co (NYSE: LLY), has received a Strong Buy rating from analyst Louise Chen at Cantor Fitzgerald. Furthermore, Chen has raised the price target for the company from $485.00 to $550.00.

Chen's decision to maintain the Strong Buy rating follows the announcement of phase 2 retatrutide results by Eli Lilly on June 26, 2023. The analyst expressed optimism about the company's recent phase 2 data readouts, including positive results for orforglipron, retatrutide, and donanemab Phase 3 trials.

According to Chen, the market is underestimating the peak sales potential of Eli Lilly's new drugs. With the positive phase 2 results and ongoing phase 3 trials, the analyst believes that the market has not fully recognized the potential of these drugs.

Orforglipron is an investigational nonpeptide oral glucagon-like peptide-1 (GLP-1) receptor agonist. It is being studied for chronic weight management in people who are obese or overweight, as well as for glucose reduction in individuals with type 2 diabetes.

Retatrutide, on the other hand, is an investigational single molecule that activates the body's receptors for three hormones: glucagon, glucose-dependent insulinotropic polypeptide (GIP), and glucagon-like peptide-1 (GLP-1). Its potential application lies in the treatment of obesity.

Donanemab, another promising drug in Eli Lilly's pipeline, is currently in trials focused on slowing the progression of early Alzheimer's disease.

Eli Lilly & Co, founded in 1876, offers a wide range of medicines for various medical conditions, including cardiovascular conditions, diabetes, endocrinology, cancer, neurological problems, immune disorders, men's health, and musculoskeletal problems. The company's commitment to developing innovative solutions has earned it a prominent position in the pharmaceutical industry.

As always, investors should conduct thorough research and consider multiple perspectives before making any investment decisions.

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