Shares of Eli Lilly (NYSE:LLY) fell in today’s trading despite receiving some analyst praise. According to BMO, via four-star analyst Evan Seigerman, Eli Lilly’s new Alzheimer’s drug, Kisunla, could bring in up to $7.1 billion in sales. The drug is priced at $32,000 per year and will compete with Biogen (NASDAQ:BIIB) and Eisai’s (JP:4523) Leqembi, which costs about $26,500 a year.
Although both drugs are injected into a vein, Kisunla only needs to be taken every four weeks compared to Leqembi’s every two weeks, which makes it more convenient. It’s important to keep in mind that these drugs aren’t cures. Instead, they are designed to slow down the progression of the disease by reducing the amyloid plaques in the brain that are linked to Alzheimer’s.
BMO expects Kisunla’s launch to be slow but sees it as a big growth opportunity for Lilly. Right now, Lilly’s main revenue comes from diabetes drugs, with top sellers Trulicity and Mounjaro making $7.1 billion and $5.1 billion, respectively, in 2023. BMO thinks having two big Alzheimer’s drugs on the market is good, as it will help both products.
It’s worth noting that, so far, Seigerman has enjoyed a 100% success rate on LLY stock, with an average return of 60.71% per rating. Currently, he has a Buy rating with a $1,001 per share price target.
Is LLY Stock a Buy?
Overall, analysts remain bullish on LLY stock with a Strong Buy consensus rating based on 16 Buys and four Holds assigned in the past three months. Year-to-date, LLY has increased by more than 54%, and the average LLY price target of $892.29 implies a downside risk of 0.54% from current levels.
