Eli Lilly Leads GLP-1 Market, Stock Price Rises
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Market Performance Divergence: Eli Lilly's stock has risen over the past year, reflecting its strong performance in the GLP-1 drug market, while Novo Nordisk's shares have sharply declined due to competitive pressures, highlighting the competitive dynamics between the two companies in the new drug sector.
- Impact of Drug Innovation: GLP-1 drugs are hailed as a miracle for weight loss, and despite the risk of weight regain after discontinuation, demand remains robust, with Eli Lilly quickly capturing market share and solidifying its leadership position in this niche.
- Valuation Considerations: Eli Lilly's P/E ratio stands at approximately 53, which aligns with its five-year average but appears high compared to the industry average of around 10, prompting investors to consider locking in profits in light of potential market volatility.
- Competitive Dynamics: Novo Nordisk is set to launch an oral GLP-1 drug, potentially regaining market share in 2026, while Eli Lilly is also exploring new delivery methods, underscoring the importance of continuous innovation in the rapidly evolving pharmaceutical industry.
Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1078 USD with a low forecast of 800.00 USD and a high forecast of 1300 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1041.510
Low
800.00
Averages
1078
High
1300
Current: 1041.510
Low
800.00
Averages
1078
High
1300
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include 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; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
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.
