The GLP-1 weight reduction wars have gone international.
Shares of Eli Lilly (LLY 3.30%), a prescription drugs large and maker of the Mounjaro GLP-1 weight reduction drug, jumped 3.2% by 12:50 p.m. ET Wednesday after Reuters reported it is increasing its Mounjaro enterprise in India. Moreover, Lilly received a brand new value goal from Cantor Fitzgerald this morning.
However that information was each unhealthy and good.
Picture supply: Getty Pictures.
Mounjaro goes to India
Let’s begin with the straightforward information: Eli Lilly has begun promoting injector pens loaded with Mounjaro in India at a beginning value of $160 for a 2.5 mg dose (rising by a number of tiers to about $315 for the most important permissible dose in India, 15 mg).
Reuters notes Lilly is chasing Novo Nordisk (NVO 2.35%) into the subcontinent, with Novo having begun injector pen gross sales in June. Nevertheless, Novo’s promoting its GLP-1 weight reduction drug, Wegovy, for wherever from $200 to $300 for doses starting from 0.25 to 2.4 mg.
Smaller doses of Wegovy yield weight reduction much like increased doses of Mounjaro, so comparisons between “mg” of Mounjaro and Wegovy aren’t instantly comparable. Nonetheless, Lilly’s decrease costs appear calculated to assist win away market share from Novo.
What Cantor says about Lilly
As we speak’s different large Lilly information comes from Cantor Fitzgerald by the use of The Fly, which stories analyst Carter Gould has lowered his value goal on Lilly inventory to $825 — however nonetheless thinks the inventory is a purchase.
Admitting Lilly’s part 3 knowledge on its orforglipron GLP-1 weight reduction capsule was underwhelming, Gould calls Lilly inventory a “show-me-story” now. The analyst advises we might not know whether or not orforglipron is a hit earlier than late 2026.
As for Lilly inventory, at a ahead P/E ratio of simply 28, and with a 32% long-term projected earnings progress fee, I nonetheless assume it is a purchase.
Wealthy Smith has no place in any of the shares talked about. The Motley Idiot recommends Novo Nordisk. The Motley Idiot has a disclosure coverage.
