Geoff Meacham, an analyst from Citi, maintained the Buy rating on Eli Lilly & Co. The associated price target remains the same with $1,190.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Geoff Meacham has given his Buy rating due to a combination of factors that highlight Eli Lilly & Co’s strong potential in the weight loss market. The company’s oral GLP-1 drug, orforglipron, has shown promising results in phase 3 studies, demonstrating effective weight loss outcomes. This positions the drug as a potential first beneficiary of the FDA’s national priority voucher program, which could accelerate its approval timeline to the end of 2025, ahead of the consensus expectation of mid-2026.
Additionally, Eli Lilly’s innovative subscription-based model for orforglipron is designed to enhance patient retention and generate stable revenue. This model targets two main consumer groups: those seeking weight loss for specific events and those transitioning from injectable GLP-1 treatments to an oral option for long-term maintenance. The subscription approach, with its rewards structure, is expected to increase annual revenue per patient by over 10% compared to traditional month-to-month usage, making it a compelling long-term investment opportunity.
Meacham covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Gilead Sciences, and Vertex Pharmaceuticals. According to TipRanks, Meacham has an average return of 2.5% and a 53.46% success rate on recommended stocks.
In another report released on August 29, Bernstein also assigned a Buy rating to the stock with a $1,100.00 price target.