Leerink downgrades Eli Lilly with thesis changed after results for orforglipron

As previously reported, Leerink downgraded Eli Lilly (LLY) to Market Perform from Outperform with a price target of $715, down from $944. Following “disappointing” initial results for orforglipron, the company’s oral GLP-1, the firm is lowering its long-term projections and notes that its “investment thesis has changed” as it no longer expects upward pressure on long-term consensus expectations. The firm also notes that Lilly’s major competitor Novo Nordisk (NVO) is struggling and may need to continue to use price to compete in its duopoly while the firm expects growing competition from various competitors starting late decade.