Eli Lilly gets BofA target hike as non-obesity pipeline takes focus
Yahoo Finance ·
Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Eli Lilly and Co (NYSE:LLY) received a higher price target of $1,557 from Bank of America, which maintained its "buy" rating while highlighting potential upside from drugs beyond obesity. The bank raised its valuation multiple from 25 times to 26 times estimated 2028 underlying earnings per share, excluding acquired R&D expenses. That increase reflects Bank of America’s assessment of superior growth and execution, with the December 7 R&D Day identified as a possible catalyst. Across Eli Lilly’s roughly 20 unique non-obesity molecules in phase II or later, the bank sees the greatest room for consensus upside in neuropsychiatric platforms, followed by oncology. One focus is brenipatide, which spans approximately 10 phase II and phase III indications, mostly phase II proof-of-concept studies. Bank of America outlined an optimistic peak-sales scenario of $10 billion to $20 billion, compared with consensus expectations of $2 billion to $3 billion. The bank said realizing that opportunity would require demonstrating efficacy on standard disease endpoints, regardless of weight loss, to secure traditional reimbursement, with evidence strongest in addiction. Alongside brenipatide, Eli Lilly’s cleminorexton and BPL-003 offer further neuropsychiatric platform potential, according to Bank of America. The bank estimated their combined peak revenue potential at $5 billion to $15 billion, with indication breadth central to upside and durable phase III efficacy important for BPL-003. Beyond those platforms, Bank of America highlighted immunology and oncology as areas investors want to see expand, while internally developed assets carry limited consensus revenue expectations. Looking toward clinical milestones, the bank identified EMBER-4 and TRAILBLAZER-ALZ 3 as major binary events in 2027, alongside brenipatide proof-of-concept and phase III readouts in 2027-28.
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