Eli Lilly (LLY) Developing New Muscle-Boosting Drug

U.S. pharmaceutical company Eli Lilly (LLY) has partnered with Juvena Therapeutics on a new muscle-boosting drug.

The partnership with Juvena Therapeutics is worth $650 million, mostly in payments made upon certain milestones being met. In a news release, Eli Lilly said it will use Juvena’s artificial intelligence (AI) screening platform to identify candidates that improve muscle health and body composition.

Interest in drugs that help with muscle growth is rising alongside the explosive popularity of GLP-1 weight loss medications. Eli Lilly says losing lean muscle mass could theoretically affect physical function and raise the risk of falls and fractures in older people and senior citizens.

Muscle Regeneration

Eli Lilly is partnering with privately held Juvena Therapeutics because the company has a platform that’s used for mapping stem-cell-secreted proteins that can help build and maintain muscle mass.

Juvena used its platform to discover JUV-161, a first-in-class fusion protein that is designed to boost muscle regeneration. Juvena is now engaged in the first human trial of the endocrine therapy in myotonic dystrophy type 1, a disorder that impacts muscles and muscle growth.

Is LLY Stock a Buy?

The stock of Eli Lilly has a consensus Strong Buy recommendation among 20 Wall Street analysts. That rating is based on 17 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $997.60 implies 23.28% upside from current levels.

Read more analyst ratings on LLY stock