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Eli Lilly recently announced the impressive results of its SURMOUNT-5 trial, highlighting Zepbound's efficacy over Wegovy in weight management. This promising development was disclosed alongside its participation at the European Congress on Obesity and publication in The New England Journal of Medicine. Despite these headline-grabbing results, Eli Lilly's stock movement remained flat over the last month, aligning with broader market trends, which also showed little change. The company's consistent effort in product innovation, like the positive ACHIEVE-1 Phase 3 results for orforglipron, complements its steady financial performance disclosed in its recent earnings report.
Eli Lilly's recent SURMOUNT-5 trial results underscore its competitive edge in weight management therapies, a key factor in enhancing its market positioning. This innovative progress, while not immediately impacting its share price last month, could fuel future revenue growth, especially with the anticipated release of orforglipron's Phase III data targeting type 2 diabetes and obesity. Over the last five years, Eli Lilly's total return reached a substantial 392.14%, indicating a robust long-term performance. In contrast, over the past year, the company outperformed the US Pharmaceuticals industry, which experienced a 10% decline, though it lagged behind the overall US market's 8% rise.
The latest news, combined with Eli Lilly's significant investments in manufacturing and R&D, suggests potential upgrades in revenue and earnings forecasts. Analysts expect earnings to climb to about $31.7 billion by May 2028, reflecting these growth drivers. However, the stock currently trades below the analyst consensus price target of US$981.63, despite its current value of US$775.12. This presents a potential upside for investors, hinting at an opportunity for the share price to rise about 27% to meet analyst expectations. Such projections, though positive, also depend on overcoming challenges like pricing pressures and regulatory risks, which could affect future profitability.
Understand Eli Lilly's track record by examining our performance history report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.