Eli Lilly stock gains as the FDA removes tirzepatide drugs from the drug shortage list following a thorough reevaluation.
As Novo Nordisk and Eli Lilly expand sales of their popular diabetes and weight-loss drugs, cheaper copies of their patented remedies are winning approval from some regulators overseas, posing a threat to the pharma giants' prices and market share.
The U.S. Food and Drug Administration said on Thursday that Eli Lilly's weight-loss drug shortage has been resolved, following a re-evaluation of the drug's supply by the agency.
The Food and Drug Administration said the active ingredient in Eli Lilly's weight loss drug Zepbound is no longer in shortage, a decision that will eventually bar compounding pharmacies from making unbranded versions of the injection. But the FDA said it will provide a 60 to 90-day transition period where it will not take action against pharmacies for making compounded tirzepatide, which will give patients time to switch to the branded version.
Eli Lilly's diverse product portfolio and promising pipeline, including Tirzepatide, Orforglipron, and Retatrutide, support a "buy" rating for long-term investors despite current valuation metrics. Zealand Pharma's weight management candidates, Survodutide and Petrelintide, show potential but face competition and valuation concerns, leading to a "hold" rating. Eli Lilly's revenue growth, driven by weight management treatments, and strategic moves like a $15 billion share buyback and dividend increase, indicate strong future prospects.
Dividend investors often prioritize stocks that have long track records for raising their payouts. But that can be a mistake.
China's medical regulator has approved Eli Lilly's treatment for early Alzheimer's, providing patients with another option after Eisai and Biogen's Leqembi received approval in January, the company said late on Tuesday.
Pharmaceutical giant Eli Lilly (LLY 0.47%) is having a moment right now. Over the last two years the company has made a splash in the weight loss space thanks to its one-two punch of blockbuster diabetes and obesity care medications, Mounjaro and Zepbound.
Eli Lilly's robust product portfolio, strategic acquisitions, and innovation-led initiatives drive its strong growth, positioning it well in the weight-loss, immunology, and oncology markets. LLY's key products, Mounjaro and Zepbound, dominate the U.S. weight-loss market, contributing significantly to revenue and long-term strategic advantages. My fair share price estimate of $1,164 indicates a 49% upside potential.
The CHMP's opinion is based on late-stage data, which show that LLY's Omvoh is effective in Crohn's disease patients with or without prior biologic failure.
As a major pharmaceutical company that is constantly innovating and developing new treatments, Eli Lilly (LLY 0.86%) is always providing investors with additional reasons to consider buying its stock.
Eli Lilly (LLY 0.86%) and Novo Nordisk (NVO -1.53%) have competed for decades. They're both leaders in the areas of insulin and broader diabetes drugs, where they've made significant breakthroughs and fought for market share.