Latest news with #EliLilly&Co
Business Insider
3 days ago
- Business
- Business Insider
Eli Lilly (LLY) Bulls Eye $1,000 Stock Price Target as GLP-1 Alpha Bandwagon Rolls On
Eli Lilly & Co. (LLY) has emerged as one of the most compelling opportunities in the market today. The company is entering the prime of its new chapter, focused on leading the way in weight loss and diabetes treatments. I recently sold my Novo Nordisk (NVO) shares—not because I doubt Novo's science, but because I believe Lilly boasts stronger management, superior operational execution, and greater upside potential over the next one to three years. My 12-month price target for Lilly is $1,100. Confident Investing Starts Here: GLP-1 Leadership with Clinical Momentum Lilly's recent breakthrough has been nothing short of transformational. Its dual GLP-1 therapy, tirzepatide—marketed as Mounjaro for diabetes and Zepbound for obesity—is dominating the market, generating $3.84 billion and $2.31 billion in Q1 FY2025 revenues, respectively. Even more impressive, tirzepatide has shown superior weight loss results compared to Novo Nordisk's semaglutide (Ozempic, Wegovy), with Zepbound users achieving around 20% weight loss versus roughly 14% in Wegovy studies. The data is clear, and momentum is firmly on Lilly's side. Adding to my confidence is the strength of Lilly's product pipeline. Orforglipron, an oral GLP-1 candidate, recently delivered compelling Phase 3 results as the first oral, non-peptide GLP-1 agonist to match the efficacy of injectable therapies—potentially revolutionizing the patient experience in weight-loss treatment. Meanwhile, retatrutide, a triple-agonist targeting GLP-1, GIP, and glucagon receptors, achieved a remarkable 24% weight loss in early obesity trials and is advancing rapidly through Phase 3. If these next-generation drugs succeed, they could unlock hundreds of billions in new market value. Management & Manufacturing Excellence Compound Returns Great companies aren't built on strong drugs alone—they're built on strong management. What stands out most about Eli Lilly isn't just its innovative pipeline but the exceptional execution behind it. CEO David Ricks and his team have shown remarkable conviction in targeting diabetes and obesity as key growth drivers, backing that vision with massive investment. Since 2020, Lilly has poured over $50 billion into expanding U.S. manufacturing mega-sites capable of producing injectables and oral medications at scale. This is not only a bet on growth but a strategic move to reduce future risks. With Novo Nordisk facing supply constraints, Lilly's vertical integration of manufacturing infrastructure is a smart play to avoid similar pitfalls. That kind of foresight is exactly what I want managing my investments. Lilly's performance backs this up— Q1 Fiscal 2025 showed gross margins at a stellar 83.5%, up year-over-year. While R&D spending grew, it didn't outpace revenue, creating operating leverage. Selling and administrative costs rose 26%, but top-line revenue jumped 45%, signaling intelligent growth. With a forward P/E near 35 and a sales multiple around 11, Lilly isn't cheap, but it doesn't need to be. Earnings are projected to surge nearly 40% in Fiscal 2026, justifying the valuation. In my view, the market still undervalues Lilly's resilience and staying power. Technical Positioning & Price Outlook After peaking near $955 last year, Lilly shares have pulled back to around $720. On May 14, the stock's relative strength index hit 35, signaling strong value by most technical measures. For retail investors like me, that's a clear opportunity alert. While the stock remains below both its 50-day and 200-day moving averages after a 'Death Cross' indicating short-term bearish momentum, I consider that noise irrelevant for medium- to long-term investors. I view this as a rare chance to buy into a powerhouse at a discount. Given the current earnings growth trajectory, I believe shares will not only revisit but likely surpass their all-time highs soon. My 12-month price target of $1,100 implies roughly 50% upside. Fundamentally, the market is still coming to grips with the massive potential of the GLP-1 market, and I see few obstacles standing in the way of sustained growth. Is Eli Lilly a Buy, Sell, or Hold? On Wall Street, Eli Lilly has a consensus Strong Buy rating with 16 Buys, one Hold, and one Sell rating. LLY's average stock price target is $1,003.14, indicating almost 40% upside potential in the next 12 months. That's slightly below my own more bullish estimate, but still remarkable nonetheless. Healthcare Powerhouse Poised for Long-Term Growth Eli Lilly is a completely different company than it was just two or three years ago—now an innovation-driven, operationally disciplined giant leading the biggest secular growth story in healthcare. This isn't a quick trade for me; it's a long-term hold as Lilly scales its GLP-1 pipeline with promising new launches like orforglipron and retatrutide. With management's vision, strong clinical execution, disciplined approach, and significant valuation upside, LLY stands out as one of the most compelling stocks on the market. I've confidently taken my position and am ready to hold steady through the next few years of growth.
CNBC
15-05-2025
- Business
- CNBC
Healthcare shares are under pressure lately, but one stock is separating from the pack
Investors are generally avoiding the health care sector, and for good reason. While the Health Care Select Sector SPDR Fund (XLV) outperformed the S & P 500 and Nasdaq 100 through the end of April, May has meant disaster for pharmaceutical companies following the White House executive order on lowering drug prices. With the S & P 500 and Nasdaq 100 now trading back above their 200-day moving averages, and stocks like Eli Lilly & Co (LLY) and Johnson & Johnson (JNJ) feeling the pain of regulatory pressure, it's reasonable to expect very few opportunities in this former high-flying sector. However, a quick scan for stocks in the health care sector making new three-month highs yielded a number of promising charts showing improved technical characteristics. Separating from the pack? Let's review one of those names, HCA Healthcare (HCA) , and see how improved price momentum could lead to further gains. The daily chart of HCA shows how long it took for this health care provider to eclipse its 200-day moving average. After the first test in Q1, there were three additional failed attempts to push above this long-term trend barometer. Finally, at the end of April, HCA pushed above the 200-day and has now moved up to retest the price gap from October 2024. Note how the Relative Strength Index (RSI) stalled out around 60 during earlier attempts to push above the 200-day moving average. When HCA finally pushed above the 200-day, the RSI moved above the 60 level, showing positive momentum characteristics more common in bullish trends than bearish phases. The weekly chart suggests that this recent upside breakout was the result of a larger cyclical rotation from the pullback in late 2024 to a renewed uptrend phase: The weekly PPO, shown in the bottom panel, gave a buy signal in late February as HCA was nearing its 150-week moving average. We can see a similar pattern with the PPO indicator and moving average support in Q4 2024 and Q3 2022. In each instance, a pullback to the 150-week moving average was soon followed by a PPO buy signal to signal an "all clear" and a resumption of the primary uptrend. How can we manage risk as HCA retests the price gap from late 2024? Using the Ichimoku cloud model, we can see a dramatic break above cloud resistance in March, followed by a test of cloud support at the April low: There could be further pullbacks along the way, but as long as HCA remains above this cloud support zone, the primary trend appears bullish. - David Keller, CMT DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
13-05-2025
- Business
- Yahoo
PPH, Big Pharma Stocks Volatile on Trump Drug Pricing
Big pharma stocks, as measured by the VanEck Pharmaceutical ETF (PPH), plunged Monday morning then recovered in afternoon trading as investors reacted to mixed messages about President Donald Trump's sweeping plan to cut prescription drug prices by as much as 80%. PPH top holdings like Eli Lilly & Co. (LLY) and Johnson & Johnson Inc. (JNJ) fell as much as 4% in early trading. International pharmaceutical stocks like Novartis AG (NVS) and AstraZeneca PLC (AZN) also declined amid fears that U.S. policy changes could ripple across the global industry. However, major drugmakers staged a notable comeback in the afternoon as PPH closed 2% higher after the Trump administration released clarifying comments that eased some of the more severe concerns about how quickly and aggressively the pricing reforms would be implemented. This intraday rebound helped limit losses but underscored the policy sensitivity of the sector. President Trump's executive order introduces a "Most Favored Nation" (MFN) pricing policy, mandating that the U.S. pays no more for prescription drugs than the lowest price paid by other developed countries. The administration argues that Americans have long subsidized global pharmaceutical research and development through higher domestic prices. The order sets a 30-day deadline for drug manufacturers to propose price reductions, with further actions promised if significant progress isn't made within six months. Industry groups have criticized the move, warning it could stifle innovation and lead to reduced investment in new drug development. Looking ahead, the performance of the healthcare sector in 2025 will largely depend on two major variables: the direction of U.S. trade policy and the extent to which President Trump's aggressive prescription drug price reforms are implemented. While the pharmaceutical industry faces immediate headwinds, long-term outcomes will vary based on how negotiations between the federal government and drug manufacturers unfold. Big pharma stocks, heavily weighted in ETFs like PPH, are likely to remain under pressure in the short term. Valuation multiples may compress as investors price in the potential for lower U.S. revenues. However, if the policy rollout is watered down or delayed—as has often happened with healthcare legislation—and global demand for therapeutics remains strong, there may be room for a rebound later in the year. More broadly, the healthcare sector remains a key defensive allocation during periods of economic uncertainty. With the potential for a prolonged trade war, rising unemployment and tightening consumer budgets, investors may continue to rotate into sectors like healthcare, which historically outperform during late-cycle or recessionary periods. The sector's combination of non-cyclical demand, innovation potential and relative earnings stability makes it a compelling core holding for portfolios preparing for volatility. In summary, while headline risks around drug price reform may dominate in the near term, long-term investors could find opportunities in both pharmaceutical and biotechnology ETFs—provided they understand the policy risks, global trade implications and diversification potential that the healthcare sector | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
11-04-2025
- Health
- Bloomberg
Lilly's Zepbound Keeps Weight Off for Three Years, Study Finds
Patients regularly taking Eli Lilly & Co. 's obesity shot Zepbound tend to keep the weight off for at least three years, with most regaining 5% or less of the pounds they shed. A company-funded study found patients hit their lowest weight in just under two years on average. They gained roughly 3.7% of it back over the following 18 months, according a new analysis of 690 patients to be presented next month at the European Congress on Obesity in Spain.
Bloomberg
07-04-2025
- Health
- Bloomberg
Lilly Falls After Trump Drops Medicare Obesity Proposal
Eli Lilly & Co. 's shares fell Monday morning after the Trump administration spiked a plan late last week to pay for obesity drugs for Medicare patients. The Centers for Medicare and Medicaid Services said it wouldn't finalize a Biden administration proposal to expand coverage of wildly popular medications like Lilly's Zepbound and Novo Nordisk A/S 's Wegovy. The move, which CMS said it may reconsider in the future, would have given millions of older adults on the government insurance program for the elderly access to the costly medicines.
