Citi Research Raises Price Target for Eli Lilly
Citi Research recently increased the price target for Eli Lilly And Co (LLY). This change reflects the heightened anticipated risk-adjusted peak sales for the company’s oral small molecule GLP-1 agonist orforglipron as a mono/fixed-dose combination.
Eli Lilly and Competitive Threats
Acknowledging that the risk of drug-related liver toxicity is diminishing with ongoing Phase 3 trials since 2023, Citi is keeping a close watch on potential competitive threats to Eli Lilly and Novo Nordisk A/S (NVO) in the incretin drugs arena.
With a Buy rating, the analyst has raised the price target from $675 to $895, with valuation estimates ranging from $611 to $1,069 based on various sales forecasts for incretin drugs.
Challenges and Opportunities Ahead
Generic versions of semaglutide are set to flood the Chinese market soon and Western markets after 2032 as multiple manufacturers gear up production.
Potential legislative changes aiming to eliminate pharmacy benefit manager rebates could introduce new dynamics to the competitive landscape.
Despite these challenges, both Eli Lilly and Novo Nordisk are strategically positioned to fortify their market leadership and explore expansion prospects.
Supply Constraints for Mounjaro (tirzepatide)
The FDA’s website has indicated that Eli Lilly’s diabetes drug Mounjaro (tirzepatide) is facing supply constraints until 2024 due to soaring demand.
Select doses, including 7.5, 10, 12.5, and 15 milligrams, have limited availability until April, while lower doses remain unaffected.
Initially, it was expected that only three doses would have restricted availability until early March. Reuters points out that while Lilly continues producing and dispatching Zepbound doses, extraordinary demand may pose challenges for certain patients in obtaining their prescriptions.
Noteworthy Strides Amidst Challenges
Eli Lilly remains steadfast in addressing supply shortages and navigating the complexities of the pharmaceutical market to maintain its competitive edge.
Currently, LLY shares are showing a 0.37% increase, trading at $763.36 at the latest check on Tuesday.
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