Morgan Stanley (NYSE:MS) has maintained its Overweight rating on Eli Lilly (NYSE: NYSE:LLY) with a price target of $1,106.00.
Eli Lilly has introduced a new presentation of its drug Zepbound in the United States, offering single-use vials at doses of 2.5mg and 5mg. This move aligns with the company's previous statements during the second-quarter earnings call, noted an analyst from Morgan Stanley.
The new Zepbound vials complement the existing auto-injector pen versions, which are available in doses ranging from 2.5mg to 15mg. Eli Lilly also revealed that the vials would be accessible through Lilly Direct at a monthly cost of $399 for the 2.5mg dose and $549 for the 5mg dose.
The pricing strategy for Zepbound is notable as Morgan Stanley estimates the drug's net price in the second quarter of 2024 was approximately $790 per month. The financial firm anticipates this price to gradually decrease to around $600 per month by 2028.
The analyst suggested that while the new pricing could potentially lower the average price assumptions for Zepbound in the near term, depending on the product mix, the additional volume generated from the vial sales might provide a positive balance to any pricing pressures.
In other recent news, Eli Lilly has introduced new vial forms for its medications Mounjaro and Zepbound, with Evercore ISI maintaining an In Line rating for the company's shares. These new vials are priced similarly to the current net prices, making them accessible for self-pay patients.
Eli Lilly also completed its acquisition of Morphic Holding (NASDAQ:MORF), Inc., adding MORF-057, a therapy for inflammatory bowel disease, to its portfolio. In governance news, Marschall S. Runge, M.D., Ph.D., a director at Eli Lilly, will retire from the company's board of directors in 2024.
Eli Lilly's Alzheimer's drug, donanemab, is anticipated to face denial by the United Kingdom's National Health Service. However, the company's tirzepatide has shown significant weight loss results in a phase 3 study, reducing the risk of progression to type 2 diabetes.
Lastly, the Biden administration has selected Jardiance by Eli Lilly for price negotiations with the Medicare health program, a move projected to save the U.S. government $6 billion in the first year from newly negotiated lower prices.
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