CVS to Cover Eli Lilly's Weight Loss Drugs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Insurance Coverage Reinstated: CVS Caremark announced it will start covering Eli Lilly's weight loss drug Zepbound on October 1, reversing its previous decision to remove it, which could significantly boost Eli Lilly's sales.
- New Drug Coverage Expansion: CVS will also cover Eli Lilly's new GLP-1 pill, Foundayo, starting June 1, allowing Eli Lilly to compete more effectively with Novo Nordisk and further solidifying its market position.
- Significant Market Potential: Eli Lilly's sales surged 56% year-over-year to $19.8 billion in Q1, with adjusted net earnings per share soaring 156% to $8.55, demonstrating strong performance and future growth potential in the weight loss market.
- Increased Competitive Pressure: Despite competition from telemedicine companies, Eli Lilly is expected to maintain its leading position in the weight loss market through its broad product portfolio and robust pipeline, indicating ongoing growth opportunities.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1078.780
Low
950.00
Averages
1192
High
1500
Current: 1078.780
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, and market products in a single business segment called human pharmaceutical products. The Company manufacture and distribute its products through facilities in the United States, including Puerto Rico, and in Europe and Asia. The Company’s products are sold in approximately 90 countries. Its Cardiometabolic Health products Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound, and others. Its oncology products include Cyramza, Erbitux, Tyvyt, Verzenio, Retevmo, Jaypirca, and others. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. Its LillyDirect, a direct-to-patient digital health care platform, provides delivery of select Lilly medicines dispensed by third-party pharmacies to patients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Becomes First $1 Trillion Pharmaceutical Company
- GLP-1 Drug Expansion: Eli Lilly's Mounjaro and Zepbound have driven a 56% year-over-year revenue increase to $19.8 billion in Q1, with earnings per share soaring 156% to $8.55, indicating robust market demand in diabetes and obesity treatment.
- Acquisition to Broaden Portfolio: Lilly announced a $3.83 billion acquisition of three biotech firms, gaining promising drug candidates, including a $1.5 billion purchase of Curevo for a shingles vaccine, enhancing its product lineup significantly.
- Multiple Indication Development: While GLP-1 drugs are in the spotlight, Lilly's immunology, oncology, and neuroscience therapies saw a 160% revenue increase in Q1, with 42 phase 3 trials underway, anticipating several new therapies to launch soon.
- Strong Market Expectations: Lilly shares trade at a premium valuation of around 29 times projected earnings, reflecting expectations of sustained strong demand for GLP-1 drugs, with projected 2026 revenue between $82 billion and $85 billion, marking a 28% increase.
See More
Eli Lilly Accelerates Diversification Strategy with New Acquisitions
- New Asset Acquisitions: Eli Lilly's recent acquisitions of Curevo, LimmaTech Biologics, and Vaccine Company, with a total expected expenditure of up to $3.8 billion, will enhance its asset portfolio in infectious diseases, thereby reducing reliance on its core market.
- Strong Financial Performance: Over the past three years, Eli Lilly's free cash flow has significantly increased, partly due to its success in the weight-loss drug sector, providing funding for future strategic acquisitions and ensuring the company maintains its competitive edge in a challenging market.
- New Product Potential: Eli Lilly's new drugs such as Ebglyss, Kisunla, and Jaypirca posted strong sales growth in the first quarter, and although they currently represent a small portion of total revenue, this trend is expected to continue with new approvals, further diversifying revenue sources.
- Pain Management Opportunity: STC-004, a non-opioid candidate for chronic pain treatment, targets a pain management market projected to be worth $90.5 billion, and if it progresses well, it could provide Eli Lilly with new growth drivers to counteract competition in the weight-loss market.
See More
Surge in Options Trading for Healthcare Stocks
- Healthcare Stocks Surge: On Thursday, healthcare stocks outperformed as the broader market rose, with insurers Humana and Centene hitting new highs and UnitedHealth Group nearing its one-year peak, indicating a strong recovery in the sector and increased investor confidence.
- Active Options Trading: The State Street Health Care Select Sector SPDR ETF (XLV) saw 5,300 call options traded on Thursday, significantly outpacing just over 1,000 puts, reflecting bullish sentiment and expectations for future growth in the healthcare industry.
- Eli Lilly Leads Gains: Eli Lilly's stock rose over 4% towards all-time highs, with call options outnumbering puts more than two-to-one, showcasing strong demand for its weight loss drugs and confidence in future profitability.
- Comparative Financial Sector Performance: In contrast to the robust performance of healthcare stocks, options trading in the financial sector appeared muted, with nearly 380,000 options traded in the State Street Financial Select Sector ETF (XLF), indicating a more cautious market outlook for financials.
See More
CVS to Cover Eli Lilly's Weight Loss Drugs
- Insurance Coverage Reinstated: CVS Caremark announced it will start covering Eli Lilly's weight loss drug Zepbound on October 1, reversing its previous decision to remove it, which could significantly boost Eli Lilly's sales.
- New Drug Coverage Expansion: CVS will also cover Eli Lilly's new GLP-1 pill, Foundayo, starting June 1, allowing Eli Lilly to compete more effectively with Novo Nordisk and further solidifying its market position.
- Significant Market Potential: Eli Lilly's sales surged 56% year-over-year to $19.8 billion in Q1, with adjusted net earnings per share soaring 156% to $8.55, demonstrating strong performance and future growth potential in the weight loss market.
- Increased Competitive Pressure: Despite competition from telemedicine companies, Eli Lilly is expected to maintain its leading position in the weight loss market through its broad product portfolio and robust pipeline, indicating ongoing growth opportunities.
See More
Eli Lilly's Weight Management Market Developments
- Insurance Coverage Restoration: CVS Caremark announced it will start covering Eli Lilly's weight loss drug Zepbound on October 1, reversing its previous decision to remove it from the formulary, which will allow more patients to access the medication at reasonable prices, thereby enhancing Eli Lilly's competitiveness in the weight management market.
- New Drug Coverage Expansion: CVS will also cover Eli Lilly's new GLP-1 pill, Foundayo, starting June 1, meaning all three largest PBMs in the U.S. will cover both drugs, further solidifying Eli Lilly's market position against competitors.
- Significant Sales Growth: Eli Lilly's first-quarter sales surged by 56% year-over-year to $19.8 billion, with adjusted net earnings per share soaring 156% to $8.55, demonstrating its strong performance and ongoing revenue growth potential in the weight loss sector.
- Optimistic Market Outlook: Despite intensifying competition, Eli Lilly is expected to ramp up sales of non-GLP-1 drugs over the next five years, leveraging its broad product portfolio and robust pipeline to maintain its leadership in the weight management market.
See More
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- Eli Lilly Growth: Eli Lilly's stock has surged by 45.5% in the past year, significantly outperforming the 24% growth in the large-cap pharmaceuticals sector, driven by robust demand for its GLP-1 drugs, while new product launches contribute to substantial revenue growth.
- Walmart's Market Position: Walmart's shares increased by 22.1% over the past year, surpassing the 18.5% growth in the retail supermarket industry, with its scale and expanding omnichannel ecosystem enhancing competitiveness, despite challenges from fuel costs and policy uncertainties.
- Utah Medical Products: Utah Medical Products' shares rose by 27.6% in the past year, reflecting a strong balance sheet with no debt, although a 10.2% revenue decline in Q1 highlights execution risks, yet favorable long-term trends in the medical device sector remain promising.
See More
Eli Lilly Becomes First $1 Trillion Pharmaceutical Company
- GLP-1 Drug Expansion: Eli Lilly's Mounjaro and Zepbound have driven a 56% year-over-year revenue increase to $19.8 billion in Q1, with earnings per share soaring 156% to $8.55, indicating robust market demand in diabetes and obesity treatment.
- Acquisition to Broaden Portfolio: Lilly announced a $3.83 billion acquisition of three biotech firms, gaining promising drug candidates, including a $1.5 billion purchase of Curevo for a shingles vaccine, enhancing its product lineup significantly.
- Multiple Indication Development: While GLP-1 drugs are in the spotlight, Lilly's immunology, oncology, and neuroscience therapies saw a 160% revenue increase in Q1, with 42 phase 3 trials underway, anticipating several new therapies to launch soon.
- Strong Market Expectations: Lilly shares trade at a premium valuation of around 29 times projected earnings, reflecting expectations of sustained strong demand for GLP-1 drugs, with projected 2026 revenue between $82 billion and $85 billion, marking a 28% increase.
See More
Eli Lilly Accelerates Diversification Strategy with New Acquisitions
- New Asset Acquisitions: Eli Lilly's recent acquisitions of Curevo, LimmaTech Biologics, and Vaccine Company, with a total expected expenditure of up to $3.8 billion, will enhance its asset portfolio in infectious diseases, thereby reducing reliance on its core market.
- Strong Financial Performance: Over the past three years, Eli Lilly's free cash flow has significantly increased, partly due to its success in the weight-loss drug sector, providing funding for future strategic acquisitions and ensuring the company maintains its competitive edge in a challenging market.
- New Product Potential: Eli Lilly's new drugs such as Ebglyss, Kisunla, and Jaypirca posted strong sales growth in the first quarter, and although they currently represent a small portion of total revenue, this trend is expected to continue with new approvals, further diversifying revenue sources.
- Pain Management Opportunity: STC-004, a non-opioid candidate for chronic pain treatment, targets a pain management market projected to be worth $90.5 billion, and if it progresses well, it could provide Eli Lilly with new growth drivers to counteract competition in the weight-loss market.
See More
Surge in Options Trading for Healthcare Stocks
- Healthcare Stocks Surge: On Thursday, healthcare stocks outperformed as the broader market rose, with insurers Humana and Centene hitting new highs and UnitedHealth Group nearing its one-year peak, indicating a strong recovery in the sector and increased investor confidence.
- Active Options Trading: The State Street Health Care Select Sector SPDR ETF (XLV) saw 5,300 call options traded on Thursday, significantly outpacing just over 1,000 puts, reflecting bullish sentiment and expectations for future growth in the healthcare industry.
- Eli Lilly Leads Gains: Eli Lilly's stock rose over 4% towards all-time highs, with call options outnumbering puts more than two-to-one, showcasing strong demand for its weight loss drugs and confidence in future profitability.
- Comparative Financial Sector Performance: In contrast to the robust performance of healthcare stocks, options trading in the financial sector appeared muted, with nearly 380,000 options traded in the State Street Financial Select Sector ETF (XLF), indicating a more cautious market outlook for financials.
See More
CVS to Cover Eli Lilly's Weight Loss Drugs
- Insurance Coverage Reinstated: CVS Caremark announced it will start covering Eli Lilly's weight loss drug Zepbound on October 1, reversing its previous decision to remove it, which could significantly boost Eli Lilly's sales.
- New Drug Coverage Expansion: CVS will also cover Eli Lilly's new GLP-1 pill, Foundayo, starting June 1, allowing Eli Lilly to compete more effectively with Novo Nordisk and further solidifying its market position.
- Significant Market Potential: Eli Lilly's sales surged 56% year-over-year to $19.8 billion in Q1, with adjusted net earnings per share soaring 156% to $8.55, demonstrating strong performance and future growth potential in the weight loss market.
- Increased Competitive Pressure: Despite competition from telemedicine companies, Eli Lilly is expected to maintain its leading position in the weight loss market through its broad product portfolio and robust pipeline, indicating ongoing growth opportunities.
See More
Eli Lilly's Weight Management Market Developments
- Insurance Coverage Restoration: CVS Caremark announced it will start covering Eli Lilly's weight loss drug Zepbound on October 1, reversing its previous decision to remove it from the formulary, which will allow more patients to access the medication at reasonable prices, thereby enhancing Eli Lilly's competitiveness in the weight management market.
- New Drug Coverage Expansion: CVS will also cover Eli Lilly's new GLP-1 pill, Foundayo, starting June 1, meaning all three largest PBMs in the U.S. will cover both drugs, further solidifying Eli Lilly's market position against competitors.
- Significant Sales Growth: Eli Lilly's first-quarter sales surged by 56% year-over-year to $19.8 billion, with adjusted net earnings per share soaring 156% to $8.55, demonstrating its strong performance and ongoing revenue growth potential in the weight loss sector.
- Optimistic Market Outlook: Despite intensifying competition, Eli Lilly is expected to ramp up sales of non-GLP-1 drugs over the next five years, leveraging its broad product portfolio and robust pipeline to maintain its leadership in the weight management market.
See More
Latest Stock Updates from Analyst Blog
- Berkshire Hathaway Performance: Over the past year, Berkshire Hathaway's shares have declined by 2.8%, compared to a 4.3% drop in the insurance sector, indicating challenges in underwriting results due to catastrophic losses, although its strong cash position and diverse operations support financial flexibility.
- Eli Lilly Growth: Eli Lilly's stock has surged by 45.5% in the past year, significantly outperforming the 24% growth in the large-cap pharmaceuticals sector, driven by robust demand for its GLP-1 drugs, while new product launches contribute to substantial revenue growth.
- Walmart's Market Position: Walmart's shares increased by 22.1% over the past year, surpassing the 18.5% growth in the retail supermarket industry, with its scale and expanding omnichannel ecosystem enhancing competitiveness, despite challenges from fuel costs and policy uncertainties.
- Utah Medical Products: Utah Medical Products' shares rose by 27.6% in the past year, reflecting a strong balance sheet with no debt, although a 10.2% revenue decline in Q1 highlights execution risks, yet favorable long-term trends in the medical device sector remain promising.
See More
