Eli Lilly Stock (LLY) Beefs Up as India Watches its Weight

Shares in pharmaceuticals giant Eli Lilly (LLY) were healthier today off the back of surging sales of its weight loss drug Mounjaro in India.

Disease Increase

According to data from research firm PharmaTrac, Mounjaro has sold more than 81,570 units in India, totaling about 239.4 million rupees ($2.76 million) as of May, with the drug logging a 60% rise in overall sales between April and May.

Lilly beat rival Novo Nordisk (NVO) in March this year to introduce its diabetes and weight-loss drug in India. It is the world’s most populous nation with 1.4 billion people but it is suffering from an increase in obesity and diabetes as it becomes more affluent.

Indeed, according to a survey conducted by the Indian government between 2019 and 2021, a quarter of people aged 15 to 49 were overweight or obese, up from 20.6% and 19%, respectively, in 2015-2016.

In addition, the number of adults with diabetes is projected to increase to more than 124 million by 2045 from 74.2 million in 2021, according to the International Diabetes Federation.

Big Market

With its mass-market pricing, Mounjaro could become a mainstay in obesity and diabetes management in India, PharmaTrac said. The market is estimated to be worth around $150 billion by the early 2030s.

Eli Lilly said the response for its blockbuster drug Mounjaro has been “positive” in India, adding that it is focusing on meeting demand for the drug.

The next few months will be crucial in building up sales as Indian drugmakers race to deliver cheaper versions of the weight-loss drugs to grab a share of the market.

Novo Nordisk is also set to launch its weight-loss drug Wegovy in India next year.

Is LLY a Good Stock to Buy Now?

On TipRanks, LLY has a Strong Buy consensus based on 17 Buy, 2 Hold and 1 Sell ratings. Its highest price target is $1,190. LLY stock’s consensus price target is $997.60 implying a 27.08% upside.

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