LLY - Cramer reacts to Eli Lilly's telehealth service for weight-loss drug

2024-01-04 17:29:02 ET

Eli Lilly & Co (NYSE: LLY) was the talk of the market on Thursday after the pharmaceutical giant launched LillyDirect – a website that will enable patients to get prescription for its weight-loss drug directly from a telehealth provider.

Cramer recommends letting run

Shares of the multinational are already trading near an all-time high but Jim Cramer is convinced that it has more room to run still after today’s announcement.

What you don’t need to trim is Eli Lilly.

The Mad Money host reiterated his view on Thursday that Tirzepatide – the active ingredient of Lilly’s anti-obesity treatment (Zepbound) will be the best-selling drug in history.

A bunch of Wall Street analysts also estimate annual sales of GLP-1 drugs (including Zepbound and Wegovy) to eventually surpass $100 billion.

Jefferies analyst’s view on LillyDirect

Eli Lilly & Co teamed up with Form Health to launch the said telehealth service for its weight-loss drug . On Thursday, Jefferies analyst Michael Yee also said in an interview with CNBC:

I wouldn’t say it’s game-changing, of course, but it’s incremental in getting access to people online … without necessarily having to go in to see a doctor in the office.

The New York listed firm will deliver Zepbound to the patients’ home once they’ve secured prescription from the telehealth provider. Form Health doctors, however, will not receive any financial compensation from Eli Lilly for prescribing its weight-loss drug.

Wall Street currently has a consensus “overweight” rating on Eli Lilly stock.

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