Eli Lilly To Fly Higher? Fund Manager Gary Black Envisions Blockbuster Potential For Diabetes Drug Mounjaro
Portfolio Pulse from Shanthi Rexaline
Eli Lilly & Co.'s stock continues to surge due to the potential of its GLP-1 drug Mounjaro, currently used for Type 2 diabetes treatment. The drug is expected to receive FDA approval for obesity treatment by year-end. Fund Manager Gary Black estimates that if Mounjaro captures 30% of the $100 billion GLP-1 market, it could generate $10 billion in revenue for Lilly by 2025. Morgan Stanley analyst Terence Flynn raised his price target for Lilly to $673.
October 12, 2023 | 8:40 am
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Novo Nordisk's blockbuster drug semaglutide, which belongs to the same class as Mounjaro, is used for diabetes and obesity treatment. The potential success of Mounjaro could increase competition in the market.
The potential success of Mounjaro could increase competition in the market for GLP-1 drugs, which could negatively impact Novo Nordisk's semaglutide.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Eli Lilly is the fourth biggest holding in The Future Fund Active ETF, accounting for about 4.20% of the portfolio weighting. The potential success of Mounjaro could positively impact the ETF.
As Eli Lilly is a significant holding in The Future Fund Active ETF, the potential success of Mounjaro and the resulting boost in Eli Lilly's stock price could positively impact the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Eli Lilly's stock is expected to continue its upward trajectory due to the potential of its GLP-1 drug Mounjaro. The drug is expected to receive FDA approval for obesity treatment by year-end, which could significantly boost the company's revenue.
The news of the potential FDA approval of Mounjaro for obesity treatment is highly relevant to Eli Lilly as it could significantly boost the company's revenue and stock price. The raised price target by Morgan Stanley further supports this.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100