Eli Lilly & Co: Analyst Bullish on Diabetes Segment and Oncology Franchise Amid Competitive Pressures.

Eli Lilly & Co has a promising future according to analyst Evan Seigerman from BMO Capital, who maintains a Buy rating and $900 price target. Despite competition from Novartis' Kisqali, Seigerman is optimistic about Lilly's growth prospects, driven by its diabetes segment and strong pipeline strategy. The recent approval of donanemab and anticipated contributions from the oncology franchise reinforce the Buy rating.

Eli Lilly & Co (LLY.US) has been facing challenges in the weight loss drug market, with its flagship product Zepbound (active ingredient tirzepatide) underperforming in sales during the third quarter of 2024. However, analysts remain optimistic about the company's future, particularly driven by its strong diabetes segment and robust pipeline strategy.

Analyst Evan Seigerman from BMO Capital Markets maintains a Buy rating on Eli Lilly with a price target of $900. Seigerman attributes the underperformance of Zepbound to inventory issues rather than weak demand, a view shared by other analysts like Citi's Geoff Meacham and Mizuho's Jared Holz. Despite the challenges, Eli Lilly's CEO Dave Ricks expressed confidence in the potential demand for Zepbound, stating that the company's downstream customers are facing financial pressures and capacity limitations.

The recent approval of donanemab and the anticipated contributions from the oncology franchise are also seen as positive factors reinforcing the Buy rating. Eli Lilly is investing in its direct-to-consumer website to expand patient access channels, which could help stimulate demand for its drugs.

Meanwhile, Novo Nordisk's Wegovy (active ingredient semaglutide) has shown strong sales performance, with quarterly sales exceeding market expectations by 17.304 billion Danish kroner. Novo Nordisk's full-year performance guidance was also raised, reflecting the company's confidence in the market's growth prospects.

The weight loss drug market remains promising, with estimates suggesting it could reach around $100 billion by 2030. Eli Lilly's Zepbound and Novo Nordisk's Wegovy are among the leading products in this market, but many pharmaceutical companies are investing in research and development to gain a share.

References:
[1] https://www.moomoo.com/news/post/87420085/record-tr4cking-news-default