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Eli Lilly received a high price target of $1,000 from Bank of America on Friday, an increase of 29% from current levels.
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The bank said sales of Eli Lilly’s weight loss drug GLP-1 could exceed $60 billion by 2030.
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“We would argue that additional opportunities in heart disease, obstructive sleep apnea, and liver disease are significantly underestimated,” BofA said.
Eli Lilly’s stock could rise an additional 29% from current levels on strong sales of its weight-loss drug GLP-1, Bank of America said.
The bank reiterated its rating at “buy” and raised its price target to $1,000 from $800, the highest price target on Wall Street.
“Investors clearly see opportunities in Munjaro (diabetes) and Zepbound (obesity), but also in heart disease, obstructive sleep apnea, “The additional opportunities in liver disease are likely to be significantly underestimated.” Friday memo.
The bank expects sales of Eli Lilly’s GLP-1 drugs to remain strong over the next few years, with sales potentially exceeding $60 billion by 2030. For reference, Eli Lilly made $34 billion in revenue last year.
The company is seeing rapid sales growth for its GLP-1 drug, which has fewer side effects than competing FDA-approved drugs and helps patients lose weight. But for Eli Lilly, it’s an opportunity to expand the drug’s approved indications beyond obesity, which could lead to expanded insurance coverage for the drug.
“While we acknowledge there is wood to be cut in access/manufacturing capacity, we assume that by 2030 less than 7% of U.S. adults will be taking GLP-1 for obesity (leaving our competitors in ), we would argue that our forecast remains conservative,” Meacham said.
The memo says that if Eli Lilly’s next-generation weight loss drug is approved, it could add an additional $20 billion to the company’s revenue by 2030, bringing total sales for the company’s weight loss drug class to $80 billion. It is said that it will be more than that.
The company has developed an oral version of the GLP-1 drug, as opposed to the current injectable form of the drug, and a GGG agonist that is expected to help patients lose weight without significant muscle loss. It’s inside.
Finally, Meacham said Eli Lilly has a portfolio and pipeline of drugs beyond its weight loss franchise that, while much smaller than the expected growth of Mounjaro and Zepbound, should help diversify the company’s business. He pointed out that.
“Given the solid P&L impact of Lilly’s GLP-1 portfolio, the impact of its neuroscience, oncology, and I&I divisions is likely to be modest. That said, it is likely that the impact of its neuroscience, oncology, and I&I divisions will be modest. +Optionality, and the oncology/I&I sector, we’re seeing an incredible +16% CAGR for the year,” Meacham said.
I&I refers to Eli Lilly’s immunology and inflammation medicines.
Read the original article on Business Insider
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