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Eli Lilly (LLY) is a pharmaceutical company that focuses on cardiometabolic health, neuroscience, oncology, and immunology. The company markets its products through brands like Jardiance, Emgality, Humalog, Mounjaro, and Trulicity.
Eli Lilly was founded in 1876 and operates in 125 countries with its headquarters in Indianapolis, Indiana.
About LLY Stock
Eli Lilly has shown notable volatility in the medium term. Over the past month, the stock has gained 2.3%, however shares are down 1% in the year to date. The stock remains 21.4% below its 52-week high while registering a 13.7% slip in the past 52 weeks.
Eli Lilly Lowers Guidance
Eli Lilly posted its first-quarter results back on May 1. The company reported a profit of $3.34 per adjusted share, widely missing analysts’ $3.52 estimate. The company generated $12.73 billion in revenue, a significant 45% rise from the same quarter last year and beating Wall Street’s $12.62 billion estimate.
Revenue from Mounjaro saw a substantial rise of 113% year over year to $3.84 billion. Zepbound produced $2.31 billion revenue, registering 20.9% growth.
Shares of Eli Lilly fell more than 11% on the results as investors focused on the revised guidance. The company lowered its profit forecast with adjusted EPS now expected in the range of $20.78 to $22.28 from the previous range of $22.50 to $24.00 per adjusted share. The company cites heightened acquired in-process research and development charges (IPR&D) as one of the reasons for the guidance cut.
Eli Lilly Acquires Verve Therapeutics
Eli Lilly has announced an agreement to acquire gene-editing company Verve Therapeutics (VERV) for $1.3 billion. This values Verve Therapeutics at $10.50 per share, reflecting a 67.5% premium to its pre-announcement closing price. The move comes as part of Eli Lilly’s plans to diversify the company’s operations beyond diabetes and weight-loss drugs.
Eli Lilly will pay $1 billion upfront and an additional $300 million contingent upon Verve Therapeutics’ ability to achieve certain clinical targets.
The companies were already involved in a partnership aimed at utilizing gene-editing treatment to lower cholesterol levels in cardiovascular patients. Verve Therapeutics’ gene-editing technique utilizes cutting-edge technology allowing it to execute precise one-time changes to the DNA. This can deactivate genes such as PCSK9, LPA, and ANGPTL3, contributing to high cholesterol levels. At present the company is undergoing early stage clinical trials in patients diagnosed with familial hypercholesterolemia, a genetic disorder that causes high levels of LDL cholesterol.
Should You Buy LLY Stock Here?
Eli Lilly is a top-rated pharmaceutical stock with a consensus “Strong Buy” rating from analysts. Its mean price target is $983.12, reflecting upside potential of nearly 29%.
The stock is covered by 26 analysts and has received 20 “Strong Buy” ratings, two “Moderate Buy” ratings, and four “Hold” ratings from Wall Street.
