Consider a lucrative investment opportunity: Eli Lilly Stock. With its current market value of $1.3 billion, it's an appealing prospect for potential investors. This pharmaceutical giant might be worth considering for your portfolio right now.
Kicking it with LLY: Eli Lilly, a drug juggernaut focusing on cardiometabolic health, neuroscience, oncology, and immunology, rockets its products through iconic brands like Jardiance, Emgality, Humalog, Mounjaro, and Trulicity. With roots dating back to 1876, this heavyweight operates globally from its headquarters in Indianapolis, Indiana.
LLY Stock: A Rollercoaster Ride
LLY stock exhibits a wild ride in the mid-term, with a modest 2.3% gain over the past month yet slipping 1% year to date. The share price remains 21.4% below its 52-week high, and it took a 13.7% hit in the last 52 weeks.
LLY Lowered Guidance: What's the Scoop?
LLY shared its first-quarter results on May 1, reporting an adjusted EPS of $3.34 per share, narrowly missing analysts' $3.52 prediction. Total revenue skyrocketed 45% year over year to $12.73 billion, beating expectations of $12.62 billion.
Revenue from Mounjaro saw a whopping 113% year-over-year increase to $3.84 billion, while Zepbound produced $2.31 billion revenue, growing by 20.9%. However, investors were unimpressed by the revised guidance, as the company lowered its profit forecast, with adjusted EPS expected between $20.78 to $22.28, down from $22.50 to $24.00 per share. These changes are primarily due to increased acquired-in-process research and development charges (IPR&D) associated with recent acquisitions.
LLY Acquires Verve Therapeutics: A Gamechanger?
LLY has announced a whopping $1.3 billion deal to buy gene-editing company Verve Therapeutics, representing a 67.5% premium over its pre-announcement closing price. The acquisition is part of LLY's plan to branch out beyond diabetes and weight-loss drugs.
The companies were already partnering on utilizing gene-editing therapies to lower cholesterol levels in cardiovascular patients. Verve's technology uses precision gene-editing to make one-time changes to DNA, potentially deactivating genes associated with high cholesterol. Currently, the company is in the early stages of clinical trials for patients with familial hypercholesterolemia, a genetic disorder causing high LDL cholesterol. LLY will pay $1 billion upfront and an additional $300 million contingent on achieving clinical milestones.
Is LLY Worth the Buy?
LLY holds a "Strong Buy" rating from analysts, with a mean price target of $983.12, suggesting an upside potential of approximately 29%. Covered by 26 analysts, the stock has received 20 "Strong Buy" ratings, two "Moderate Buy" ratings, and four "Hold" ratings from Wall Street, making LLY a hot pick in the pharmaceutical realm.
- LLY's financial performance, as indicated by their stock, has shown a rollercoaster trend, with a modest increase in the past month but a decrease year to date, signifying a crucial area for investors to monitor.
- In a strategic move, LLY, with its "Strong Buy" rating and an upside potential of about 29%, is expanding beyond diabetes and weight-loss drugs by acquiring gene-editing company Verve Therapeutics for $1.3 billion, a significant investment towards a potential breakthrough in cardiovascular treatments.
