Shares of drug maker Eli Lilly (LLY) were little changed at the time of writing despite announcing results from its Phase 3 VIVID-1 trial, which showed that patients with moderate to severe Crohn’s disease treated with mirikizumab experienced better bowel healing compared to those treated with ustekinumab, a drug owned by Johnson & Johnson (JNJ).
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Mirikizumab works by targeting the IL-23 pathway, which is involved in causing inflammation in Crohn’s disease patients. This condition is a chronic inflammatory bowel disease that affects the digestive tract and leads to symptoms like abdominal pain and diarrhea. Unfortunately, inflammation in Crohn’s disease patients can continue even after they are treated with standard therapies, but mirikizumab showed a notable improvement in bowel healing.
In fact, patients treated with mirikizumab in the study saw better outcomes at 52 weeks. This was especially true for those who had previously failed biologic treatments, which are a type of medication derived from living organisms or their cells and target the specific parts of the immune system that contribute to inflammation. In addition, the drug included common side effects like mild infections (like colds), headaches, and reactions at the spot where the injection was given.
Lilly is now looking for regulatory approval for mirikizumab in treating Crohn’s disease in several regions, including the U.S., Europe, Japan, and China. They are also studying the long-term safety and effectiveness of the drug in both adults and children.
Is LLY a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on LLY stock based on 17 Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 52% rally in its share price over the past year, the average LLY price target of $1,050 per share implies 12.7% upside potential.
