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On Tuesday, Deutsche Bank maintained a Hold rating on Eli Lilly & Company (NYSE:) and set a price target of $695.00. This stance is a result of consideration of recent Phase 2 trial data from Viking Therapeutics (NASDAQ:), which suggests that competition in the GLP1 market will exceed the current duopoly of Eli Lilly and Novo Nordisk (NYSE:). This suggests that there is a possibility of expansion. Data reveals that Viking Therapeutics' investigational drug VK2735 led to significant weight loss in obese patients over 13 weeks.
Trial results for VK2735, a GLP-1 x GIP dual agonist, showed up to approximately 13% weight loss without signs of plateauing, potentially challenging Eli Lilly and Novo Nordisk's market position. Despite these findings, Deutsche Bank analysts emphasized the complexity of manufacturing these treatments at scale, which has historically provided Eli Lilly and Novo Nordisk with a competitive advantage. Ta.
Compared to Eli Lilly and Novo Nordisk's treatments, once-weekly doses of 15 mg of VK2735 led to faster weight loss and a 17% incidence of nausea, compared to Eli Lilly's and Novo Nordisk's treatments. This was lower than the 30-45% that typically occurs with disc treatments. However, VK2735 had a higher vomiting rate of 63% and a discontinuation rate of 20%, which was higher than the 10-20% vomiting and 6-16% discontinuation rate seen with Eli Lilly and Novo Nordisk's treatments. .
The analysis also touched on the performance of VK2735 versus AMG133, noting that although the weight loss pace of VK2735 was slightly lower than that of AMG133, there was strong interest in the effects of VK2735 on free fatty acids and lipid parameters. This interest is particularly in light of his Nature paper suggesting that GIP antagonism may counteract the benefits of his GLP-1 x GIP dual agonism.
Despite the potential for increased market competition, Eli Lilly's stock rating and price target remain unchanged. This analysis highlights the importance of manufacturing capacity and the complex dynamics of the GLP1 market as new data emerges.
Investment Pro Insights
Eli Lilly & Company (NYSE:LLY) remains a strong player in the pharmaceutical industry due to several factors supporting its market position. According to InvestingPro Tips, Eli Lilly has increased its dividend for nine consecutive years and maintained its dividend payments for 54 consecutive years, demonstrating a consistent ability to reward shareholders. Additionally, the company's net income is expected to increase this year, with four analysts recently raising their earnings estimates for next year, giving a positive outlook for the company's financial performance.
From a financial perspective, InvestingPro data paints a solid picture. Eli Lilly has a significant market capitalization of $694.85 billion, reflecting its large presence in the market. The company has achieved significant revenue growth of 19.56% in the past 12 months, as of the first quarter of 2023, and its gross profit margin has reached 79.25%, demonstrating its operational efficiency. I am. Moreover, Eli Lilly's operating margin is his 31.61%, highlighting the company's ability to effectively convert sales into profits.
Investors considering Eli Lilly should note that the company's current P/E ratio is 132.47, suggesting a high valuation multiple. However, this metric should be considered in the context of a company's overall financial health and industry standing. For more comprehensive analysis and additional his InvestingPro tips, including insights on company valuation multiples and stock price volatility, visit https://www.investing.com/pro/LLY. InvestingPro offers 22 more tips to help you dig deeper into Eli Lilly's financial health and market position.To access these insights and more, use our coupon code pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions.
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