What's Going On With Eli Lilly Stock Wednesday?
Portfolio Pulse from Vandana Singh
Eli Lilly And Company's (NYSE:LLY) stock has seen a significant increase, gaining almost 25% year-to-date, with its enterprise value surpassing $700 billion. The surge is attributed to high demand for Mounjaro and Zepbound, both containing tirzepatide. BMO Capital Markets forecasts $12.78 billion in tirzepatide revenues for FY 2024. Eli Lilly reported a 28% Y/Y increase in Q4 2023 revenue, beating consensus. The company is expanding production capacity for incretin drugs due to expected demand outpacing supply in 2024. Additionally, Eli Lilly's partner BioAge Labs raised $170 million for Phase 2 clinical development of a compound in combination with Zepbound for obesity.
February 14, 2024 | 3:35 pm
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POSITIVE IMPACT
Eli Lilly's stock has gained significantly due to high demand for Mounjaro and Zepbound, with tirzepatide revenues forecasted to reach $12.78 billion in FY 2024. The company reported a 28% Y/Y increase in Q4 2023 revenue, surpassing expectations. Expansion in production capacity and a successful $170 million funding round for partner BioAge Labs further bolster the positive outlook.
The significant gain in Eli Lilly's stock is directly tied to the high demand for its products Mounjaro and Zepbound, which contain tirzepatide. The positive earnings report for Q4 2023, which exceeded expectations, along with the forecasted revenue growth for tirzepatide, contribute to a bullish outlook. The expansion of production capacity to meet anticipated demand and the successful funding round for BioAge Labs, which will support clinical development of a compound in combination with Zepbound, further enhance the company's growth prospects.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100