Eli Lilly growth tied to nascent diabetes drug sales
US: Wall Street analysts will be focusing on sales of Eli Lilly and Co's newly approved diabetes drug Mounjaro when the company reports results on Tuesday, as sales of its older drugs come under pressure from increased competition and low pricing.
At least five analysts have raised their price target on the stock in the run-up to earnings on hopes that Mounjaro, which is approved to improve blood sugar levels in diabetics, will get U.S. approval for treating obesity next year.
"We remain bullish on Mounjaro's sales potential because we anticipate additional U.S. payer coverage this winter," SVB Securities analyst David David Risinger said in a research note on Monday.
The company's sales could quickly jump once Lilly gets more insurers to cover its costs, according to Risinger.
Context
Obesity is the largest chronic health problem in the United States and also leads to many other illnesses such as liver disease and heart issues. Novo Nordisk's Wegovy is a rival treatment option for obesity.
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