2024-06-19 12:30:39 ET
Summary
- In recent months, Eli Lilly has continued to delight investors with growth in its share price.
- Strong sales of the company's diabetes franchise, coupled with progress in the development of tirzepatide, have helped its market capitalization double over the past year.
- However, many of its competitors are developing more effective drugs to combat obesity and type 2 diabetes.
- Furthermore, I believe Wall Street is overestimating the commercial prospects of donanemab in treating Alzheimer's disease.
- Consequently, I'm initiating coverage of Eli Lilly with a "hold" rating.
Eli Lilly and Company ( LLY ) is one of the largest pharmaceutical companies globally, with leading positions in the global obesity and type 2 diabetes treatment markets.
Thesis
Eli Lilly's share price has nearly doubled over the past 12 months, reflecting euphoria among investors and traders about the expected Fed interest-rate cuts in the second half of 2024, significant progress in developing its experimental drugs aimed at combating autoimmune diseases, and raised its 2024 full-year revenue guidance due to higher demand for Zepbound and Mounjaro than previously expected....
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For further details see:
Eli Lilly: The Party Is Probably Nearing The End