Eli Lilly And Co (NYSE:LLY) shares are trading higher Wednesday. The stock appears to be moving alongside Novo Nordisk (NYSE:NVO) shares after the drugmaker halted trials on early signs of efficiency.
What Happened: The independent Data Monitoring Committee recommended that Novo Nordisk stop its kidney outcomes trial FLOW after interim analysis showed the treatment would be successful.
Eli Lilly makes a similar GLP-1 drug to Novo’s Ozempic called Mounjaro, which was highlighted by Morgan Stanley in a new note.
Morgan Stanley analyst David Phung maintained Eli Lilly with an Overweight rating and raised the price target from $640 to $673, citing improved 2024 to 2026 estimates for the company’s type 2 diabetes medication Mounjaro based on an updated view of the company’s launch trajectory in obesity.
“We are projecting that LLY will grow its volumes by ~12mn TRx in 2024 vs. 2023, which represents <50% of the peak capacity that will start coming online this year … While the specific timeline for the new capacity to come online is uncertain, we feel this represents a conservative estimate,” Phung said in a new note to clients.
Morgan Stanley now anticipates 2024 sales of $11.3 billion and 2025 sales of $17.5 billion versus prior estimates of $9.7 billion and $13.9 billion. Mounjaro is expected to significantly outpace Novo Nordisk’s Wegovy sales in its first year on the market.
See Also: Novo Nordisk’s Weight Loss Drugs Like Wegovy, Ozempic May Pose Serious Stomach Risks, Study Suggests
LLY Price Action: Eli Lilly shares were up 3.49% at $599.24 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Eli Lilly.
