Shares of healthcare company Eli Lilly (NYSE:LLY) fell in today’s trading despite receiving FDA approval for its Alzheimer’s drug, donanemab (marketed as Kisunla), for adults with early symptomatic Alzheimer’s disease. This approval expands the limited treatment options available for nearly 7 million Americans affected by this condition, which is a leading cause of death for those over 65. The number of affected individuals is projected to nearly double by 2050.
Eli Lilly’s drug will compete with Biogen (NASDAQ:BIIB) and Eisai’s (JP:4523) Leqembi. Both drugs aim to slow Alzheimer’s progression in early-stage patients by targeting amyloid plaques in the brain. Donanemab slowed disease progression by 35% over 18 months in trials and will cost $12,522 over six months (six injections) and $32,000 per year (13 injections), with Medicare covering eligible patients.
However, these treatments are not cures and carry significant risks, including potentially severe side effects like brain swelling and bleeding, which led to fatalities in some cases during trials.
Is LLY Stock a Buy?
Analysts remain bullish on LLY stock with a Strong Buy consensus rating based on 17 Buys and three Holds assigned in the past three months. Year-to-date, LLY has increased by more than 55%, and the average LLY price target of $896.83 implies a downside risk of 0.91% from current levels.
