Eli Lilly Leads the Weight Loss Drug Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 54 minutes ago
0mins
Source: Fool
- Market Leadership: Eli Lilly is positioned to lead the weight loss drug market, projected to reach $100 billion in the next decade from a current value of $40 billion, indicating strong performance in a rapidly growing sector.
- Significant Sales Growth: In the recent quarter, Mounjaro and Zepbound generated over $12 billion in total sales, reflecting robust consumer demand for GLP-1 drugs and the company's competitive edge in this field.
- New Product Launch: Lilly received FDA approval for its oral weight loss drug Foundayo, treating 20,000 patients in its first month, showcasing strong appeal among new users and potentially providing new growth avenues for the company.
- Managing Competitive Risks: While new products from Novo Nordisk and other competitors pose risks to Zepbound sales, the introduction of Foundayo may broaden the potential audience for GLP-1 drugs, creating new market opportunities for Eli Lilly.
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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: 989.870
Low
950.00
Averages
1192
High
1500
Current: 989.870
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.
Roche Secures CE Mark for Alzheimer's Blood Test
- CE Mark Approval: Swiss pharmaceutical company Roche announced that its second Elecsys blood test for Alzheimer's disease has received CE mark approval, allowing it to sell in the region and further expand its market share in the neuroscience sector.
- Collaborative Development: The test was developed in partnership with U.S. company Eli Lilly, highlighting the ongoing collaboration between the two firms in the early diagnosis of Alzheimer's disease, which is expected to enhance market acceptance and clinical application of related products.
- Market Potential: With the global increase in Alzheimer's disease patients, the new testing tool will aid in early identification and intervention, thereby improving patient quality of life and alleviating the burden on healthcare systems, presenting significant social and economic implications.
- Strategic Importance: Securing CE mark not only strengthens Roche's competitive position in the Alzheimer's field but also lays the groundwork for future innovative product launches in the European market, reflecting the company's long-term commitment to the neuroscience domain.
See More
Eli Lilly Leads the Weight Loss Drug Market
- Market Leadership: Eli Lilly is positioned to lead the weight loss drug market, projected to reach $100 billion in the next decade from a current value of $40 billion, indicating strong performance in a rapidly growing sector.
- Significant Sales Growth: In the recent quarter, Mounjaro and Zepbound generated over $12 billion in total sales, reflecting robust consumer demand for GLP-1 drugs and the company's competitive edge in this field.
- New Product Launch: Lilly received FDA approval for its oral weight loss drug Foundayo, treating 20,000 patients in its first month, showcasing strong appeal among new users and potentially providing new growth avenues for the company.
- Managing Competitive Risks: While new products from Novo Nordisk and other competitors pose risks to Zepbound sales, the introduction of Foundayo may broaden the potential audience for GLP-1 drugs, creating new market opportunities for Eli Lilly.
See More
Novo Nordisk Added as Long Idea with 52%-117% Upside Potential
- Market Mispricing: Hedgeye analyst Tom Tobin highlighted that Novo Nordisk's current price of $46 undervalues a $50 million patient US market opportunity, with the Wegovy pill launch expected to outperform previous obesity drugs, indicating a significant market misunderstanding of its potential.
- Duopoly Establishment: By aggressively cutting prices, Novo and Lilly have effectively secured a duopoly, raising barriers to market entry; while this strategy compresses short-term margins, it enhances long-term market share stability, showcasing the foresight of the company's strategy.
- Growth Forecast: Tobin's model predicts 3.6 million monthly prescriptions by 2026, with an estimated EPS of $5.06 for 2027, significantly above the consensus estimate of $3.55, indicating strong future growth potential for the company.
- Price Target: With a 14x P/E ratio, Novo Nordisk's target price is set at $70, and at a re-rated 20x, it could reach $100, implying a potential upside of 52%-117%, reflecting investor optimism about its future performance.
See More
Novo Nordisk's Stock Rebound Driven by Pipeline Potential
- Financial Overview: Novo Nordisk's Q1 adjusted net sales fell 10% year-over-year to 70.1 billion Danish kroner (approximately $11 billion), and while the results are disappointing, they were already anticipated by the market, indicating the company's resilience.
- Success of Oral Wegovy: Since its launch in January, over two million patients have adopted oral Wegovy, driving the stock's rebound and highlighting its potential in the anti-obesity market.
- New Drug Approval Progress: Novo Nordisk has received approval for a higher-dose Wegovy, enhancing its competitiveness against Eli Lilly's Zepbound, while also awaiting approval for CagriSema, further enriching its product pipeline.
- Valuation and Market Outlook: The stock is currently trading at a forward P/E of 13.6, below the healthcare sector average of 16.8, and while financial results justify a lower valuation, its robust pipeline may provide momentum for future growth.
See More
Eli Lilly Launches Alzheimer’s Therapy Lormalzi in India
- Rising Market Demand: Eli Lilly has launched its Alzheimer’s therapy Lormalzi in India, where the number of patients is expected to rise from 8.8 million to 17.6 million, reflecting the urgent need for memory disorder treatments in the country.
- Pricing Strategy: Priced at ₹91,688 (approximately $957) for a 350 mg vial, the therapy aims to attract more patients through a competitive pricing strategy, enhancing market penetration.
- Competitive Landscape: Lormalzi faces competition from Biogen and Eisai's Leqembi in the Indian market, necessitating continuous innovation from Eli Lilly to maintain its competitive edge in the Alzheimer’s treatment sector.
- Global Expansion: With Lormalzi already available in the U.S. and U.K., Eli Lilly is further expanding its global footprint by launching in India, aiming to capitalize on the growing elderly population and healthcare demand in the region.
See More
Eli Lilly Launches Alzheimer's Drug Lormalzi in India
- Drug Launch: U.S.-based Eli Lilly launched its Alzheimer's drug Lormalzi, also known as Donanemab, in India on Wednesday, marking a significant step in the company's global market expansion and addressing the growing demand for Alzheimer's treatments among India's aging population.
- Market Potential: With over 8 million Alzheimer's patients in India, the introduction of Lormalzi is expected to not only improve patients' quality of life but also potentially generate substantial market share and revenue growth for Eli Lilly, further solidifying its position in the global pharmaceutical industry.
- Pricing Strategy: While specific pricing details have yet to be announced, based on the current exchange rate (1 USD = 95.76 INR), Eli Lilly may adopt a competitive pricing strategy to attract more patients and enhance drug accessibility, thereby increasing market penetration.
- R&D Investment: The launch of this new drug reflects Eli Lilly's ongoing investment in Alzheimer's research and development, indicating the company's commitment to addressing the challenges posed by a global aging society through innovative therapies, which will further drive its long-term growth strategy.
See More
Roche Secures CE Mark for Alzheimer's Blood Test
- CE Mark Approval: Swiss pharmaceutical company Roche announced that its second Elecsys blood test for Alzheimer's disease has received CE mark approval, allowing it to sell in the region and further expand its market share in the neuroscience sector.
- Collaborative Development: The test was developed in partnership with U.S. company Eli Lilly, highlighting the ongoing collaboration between the two firms in the early diagnosis of Alzheimer's disease, which is expected to enhance market acceptance and clinical application of related products.
- Market Potential: With the global increase in Alzheimer's disease patients, the new testing tool will aid in early identification and intervention, thereby improving patient quality of life and alleviating the burden on healthcare systems, presenting significant social and economic implications.
- Strategic Importance: Securing CE mark not only strengthens Roche's competitive position in the Alzheimer's field but also lays the groundwork for future innovative product launches in the European market, reflecting the company's long-term commitment to the neuroscience domain.
See More
Eli Lilly Leads the Weight Loss Drug Market
- Market Leadership: Eli Lilly is positioned to lead the weight loss drug market, projected to reach $100 billion in the next decade from a current value of $40 billion, indicating strong performance in a rapidly growing sector.
- Significant Sales Growth: In the recent quarter, Mounjaro and Zepbound generated over $12 billion in total sales, reflecting robust consumer demand for GLP-1 drugs and the company's competitive edge in this field.
- New Product Launch: Lilly received FDA approval for its oral weight loss drug Foundayo, treating 20,000 patients in its first month, showcasing strong appeal among new users and potentially providing new growth avenues for the company.
- Managing Competitive Risks: While new products from Novo Nordisk and other competitors pose risks to Zepbound sales, the introduction of Foundayo may broaden the potential audience for GLP-1 drugs, creating new market opportunities for Eli Lilly.
See More
Novo Nordisk Added as Long Idea with 52%-117% Upside Potential
- Market Mispricing: Hedgeye analyst Tom Tobin highlighted that Novo Nordisk's current price of $46 undervalues a $50 million patient US market opportunity, with the Wegovy pill launch expected to outperform previous obesity drugs, indicating a significant market misunderstanding of its potential.
- Duopoly Establishment: By aggressively cutting prices, Novo and Lilly have effectively secured a duopoly, raising barriers to market entry; while this strategy compresses short-term margins, it enhances long-term market share stability, showcasing the foresight of the company's strategy.
- Growth Forecast: Tobin's model predicts 3.6 million monthly prescriptions by 2026, with an estimated EPS of $5.06 for 2027, significantly above the consensus estimate of $3.55, indicating strong future growth potential for the company.
- Price Target: With a 14x P/E ratio, Novo Nordisk's target price is set at $70, and at a re-rated 20x, it could reach $100, implying a potential upside of 52%-117%, reflecting investor optimism about its future performance.
See More
Novo Nordisk's Stock Rebound Driven by Pipeline Potential
- Financial Overview: Novo Nordisk's Q1 adjusted net sales fell 10% year-over-year to 70.1 billion Danish kroner (approximately $11 billion), and while the results are disappointing, they were already anticipated by the market, indicating the company's resilience.
- Success of Oral Wegovy: Since its launch in January, over two million patients have adopted oral Wegovy, driving the stock's rebound and highlighting its potential in the anti-obesity market.
- New Drug Approval Progress: Novo Nordisk has received approval for a higher-dose Wegovy, enhancing its competitiveness against Eli Lilly's Zepbound, while also awaiting approval for CagriSema, further enriching its product pipeline.
- Valuation and Market Outlook: The stock is currently trading at a forward P/E of 13.6, below the healthcare sector average of 16.8, and while financial results justify a lower valuation, its robust pipeline may provide momentum for future growth.
See More
Eli Lilly Launches Alzheimer’s Therapy Lormalzi in India
- Rising Market Demand: Eli Lilly has launched its Alzheimer’s therapy Lormalzi in India, where the number of patients is expected to rise from 8.8 million to 17.6 million, reflecting the urgent need for memory disorder treatments in the country.
- Pricing Strategy: Priced at ₹91,688 (approximately $957) for a 350 mg vial, the therapy aims to attract more patients through a competitive pricing strategy, enhancing market penetration.
- Competitive Landscape: Lormalzi faces competition from Biogen and Eisai's Leqembi in the Indian market, necessitating continuous innovation from Eli Lilly to maintain its competitive edge in the Alzheimer’s treatment sector.
- Global Expansion: With Lormalzi already available in the U.S. and U.K., Eli Lilly is further expanding its global footprint by launching in India, aiming to capitalize on the growing elderly population and healthcare demand in the region.
See More
Eli Lilly Launches Alzheimer's Drug Lormalzi in India
- Drug Launch: U.S.-based Eli Lilly launched its Alzheimer's drug Lormalzi, also known as Donanemab, in India on Wednesday, marking a significant step in the company's global market expansion and addressing the growing demand for Alzheimer's treatments among India's aging population.
- Market Potential: With over 8 million Alzheimer's patients in India, the introduction of Lormalzi is expected to not only improve patients' quality of life but also potentially generate substantial market share and revenue growth for Eli Lilly, further solidifying its position in the global pharmaceutical industry.
- Pricing Strategy: While specific pricing details have yet to be announced, based on the current exchange rate (1 USD = 95.76 INR), Eli Lilly may adopt a competitive pricing strategy to attract more patients and enhance drug accessibility, thereby increasing market penetration.
- R&D Investment: The launch of this new drug reflects Eli Lilly's ongoing investment in Alzheimer's research and development, indicating the company's commitment to addressing the challenges posed by a global aging society through innovative therapies, which will further drive its long-term growth strategy.
See More
