Eli Lilly’s Strategic Acquisition of SiteOne Therapeutics Bolsters Pain Management Portfolio and Supports Buy Rating

Analyst Evan Seigerman of BMO Capital maintained a Buy rating on Eli Lilly & Co (LLY – Research Report), retaining the price target of $900.00.

Evan Seigerman’s rating is based on Eli Lilly & Co’s strategic acquisition of SiteOne Therapeutics, which is expected to enhance its competitive position in the pain management sector. The acquisition, valued at up to $1 billion, grants Lilly access to SiteOne’s Phase 2 ready Nav 1.8 inhibitor, STC-004, aligning with the company’s strategy to diversify beyond its recent successes in obesity treatment.
Furthermore, the acquisition is seen as a positive move due to the promising early data from SiteOne’s STC-004, which demonstrated favorable absorption and dosing characteristics. This deal, alongside Lilly’s strong pipeline and recent approval of donanemab, supports the company’s growth prospects in diabetes and oncology, reinforcing Seigerman’s Buy rating for the stock.

In another report released on May 23, Guggenheim also maintained a Buy rating on the stock with a $936.00 price target.