Truist: Tectonic pullback on Eli Lilly's relaxin data is excessive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 02 2025
0mins
Impact of Eli Lilly's Study on Tectonic Therapeutics: Tectonic Therapeutics (TECX) shares have dropped over 30% following negative data from Eli Lilly's study on heart failure treatments, which is seen as a setback for the relaxin drug class.
Analyst's Perspective on Tectonic's Future: Truist analyst Danielle Brill believes the selloff is exaggerated, as Tectonic's target population differs from Lilly's trial, and maintains a Buy rating with a $64 price target, citing a strong rationale for Tectonic's approach to treating pulmonary hypertension.
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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: 1020.560
Low
950.00
Averages
1192
High
1500
Current: 1020.560
Low
950.00
Averages
1192
High
1500
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.
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- AbbVie's Growth Potential: AbbVie (ABBV), with its diverse treatment portfolio and over 50 years of dividend growth history, is expected to achieve over 17% annual earnings growth, making it a top choice for investors.
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- Long-Term Remission: In the VIVID-2 study, over 90% of patients maintained steroid-free remission after one year of Omvoh treatment, demonstrating its durable efficacy in treating Crohn's disease and ulcerative colitis, potentially altering disease trajectories.
- Reduced Surgery and Hospitalization Rates: Patients treated with Omvoh in Crohn's disease showed significantly lower hospitalization and surgery rates, with an incidence of 16.9 per 100 patient-years in the first 12 weeks, nearly halving the rates compared to placebo, indicating its potential in reducing disease-related complications.
- Significant Symptom Improvement: Among Omvoh-treated patients in VIVID-2, 82.1% achieved a ≥3-point reduction in bowel urgency over three years, with 71.7% maintaining remission from urgency, highlighting its effectiveness in improving quality of life.
- Global Regulatory Approvals: Omvoh has received regulatory approval in 47 countries for the treatment of moderately to severely active ulcerative colitis and Crohn's disease, reflecting its broad recognition and application potential in the global market.
See More
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- Long-Term Remission Rates: In the VIVID-2 study, over 90% of patients maintained steroid-free remission one year after Omvoh treatment, demonstrating the drug's durable efficacy in managing Crohn's disease and its potential to alter disease trajectories.
- Significant Reduction in Hospitalization Rates: Patients treated with Omvoh experienced nearly a 50% reduction in hospitalization rates in the first 12 weeks and nearly 70% reduction from weeks 12 to 52, indicating the drug's potential to significantly improve patient quality of life by lowering disease-related complications.
- Notable Symptom Improvement: Among Omvoh-treated patients, 82.1% achieved significant relief from bowel urgency, with 71.7% scoring below 2 on the urgency scale, highlighting the drug's effectiveness in alleviating symptoms and enhancing clinician confidence in its use.
- Consistent Safety Profile: Omvoh demonstrated a safety profile consistent with known data over three years, with common adverse events including upper respiratory infections, further supporting its clinical application safety.
See More
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- Market Share Shift: Eli Lilly has captured 60% of the U.S. GLP-1 market, while Novo Nordisk's share has fallen to 39%, indicating Lilly's strong growth momentum in the obesity drug sector, which may impact Novo's future sales performance.
- Significant Revenue Growth: Lilly's Mounjaro and Zepbound generated over $11 billion in revenue in the recent quarter, showcasing triple-digit growth rates that not only enhance the company's overall financial performance but also strengthen its position in a competitive market.
- Manufacturing Capacity Boost: By ramping up production capabilities, Lilly has ensured product availability, addressing shortages from previous years, which has allowed more patients to receive timely treatment and further propelled market share growth.
- Clinical Study Advantage: Lilly's head-to-head study comparing Zepbound to Wegovy demonstrated superior weight loss results for Zepbound, potentially leading doctors and patients to prefer Lilly's products, thereby solidifying its market leadership.
See More
Eli Lilly's Combination Therapy Shows Significant Improvement in Psoriasis and Obesity
- Clinical Trial Results: Eli Lilly's TOGETHER-PsO Phase 3b trial revealed that 27.1% of participants receiving the combination of Taltz and Zepbound achieved complete skin clearance and at least 10% weight loss, significantly outperforming the 5.8% in the Taltz monotherapy group, indicating the efficacy of the combination therapy.
- Side Effects Analysis: Common adverse events in the Taltz and Zepbound group included nausea, diarrhea, and injection site reactions, yet the overall efficacy remains superior to monotherapy, highlighting the potential benefits of combination treatment despite the side effects.
- Partnership with CSL: Eli Lilly has entered into an agreement with Australian company CSL, which will receive an upfront payment of $100 million and potential milestone payments, as well as royalties on global net sales, facilitating the development of clazakizumab for cardiovascular event prevention.
- Market Performance Analysis: Although Eli Lilly's stock is currently trading below its 20-day and 50-day simple moving averages, indicating short-term weakness, it remains above its 100-day and 200-day moving averages, suggesting a positive long-term trend, with analysts maintaining an optimistic outlook on its future performance.
See More
Eli Lilly's Late-Stage Trial Achieves Key Goals
- Trial Success: Eli Lilly announced that its TOGETHER-PsO open-label Phase 3b trial successfully met both primary and key secondary endpoints, demonstrating the efficacy of its weight loss therapy Zepbound combined with psoriasis therapy Taltz, marking a significant advancement for obese or overweight patients with plaque psoriasis.
- Significant Weight Loss: Over 36 weeks, 27% of patients receiving the combination therapy achieved at least a 10% weight loss and complete skin clearance, showcasing the potential of this combination therapy to improve patient quality of life, far exceeding the 5.8% achieved with Taltz alone.
- Efficacy Comparison: The key secondary endpoint revealed that patients on the combination regimen were 40% more likely to achieve PASI 100 compared to those receiving Taltz alone, further validating the advantages of using Zepbound with Taltz, which could enhance future market acceptance.
- Safety Profile: The trial reported mostly mild to moderate adverse events consistent with the known tolerability profiles of each drug, indicating the acceptability of this combination therapy in terms of safety, laying the groundwork for future regulatory discussions.
See More
