Eli Lilly (NYSE:LLY) is riding high after the company unveiled the results of its medical trials for its obesity treatment. Shares are higher in Monday’s trading, continuing its sustained positive performance from the previous week.
Eli Lilly said the drug, called Mounjaro, proved effective in helping overweight or obese people shed their weight, helping 29% of the trial participants lose nearly a quarter of their weight or about 64 pounds on average.
However, the company noted that the drug proved most effective when combined with intensive diet and exercise. In addition, Eli Lilly said the drug showed more results when compared with patients who took a placebo or other weight loss drug. With the latest results, Eli Lilly said it plans to approach regulatory agencies in the U.S. and EU to green light its use for obesity and overweight treatment.
Is Eli Lilly a Good Stock Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on LLY stock based on 14 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average LLY price target of $606.73 per share implies 2% downside risk.
