Morgan Stanley sees ‘minimal movement’ in Eli Lilly shares on retatrutide data

Morgan Stanley analyst Terence Flynn says Eli Lilly’s (LLY) retatrutide delivered what the firm views as “a competitive efficacy profile” in the first Phase 3 trial in obesity or overweight patients and osteoarthritis of the knee, but adds that the GI tolerability profile looks to be “somewhat worse” than tirzepatide. The firm, which points out that it recently lowered its retatrutide estimates and incorporated eloralinitide into its Lilly model as it sees eloralinitide being positioned further upstream in the future paradigm, expects “minimal movement” in Lilly shares on these first retatrutide data. The firm has an Overweight rating and $1,290 price target on Eli Lilly shares, which are up about 1% to $1,007 in pre-market trading.