INDIANAPOLIS and CAIRO - Eli Lilly and Company (NYSE: NYSE:LLY) and EVA Pharma have entered into a new agreement to increase the availability of the immunological treatment baricitinib in 49 African countries, aiming to reach an estimated 20,000 patients by 2030. This initiative is part of Lilly's 30x30 strategy, which seeks to enhance healthcare for 30 million people in resource-limited settings annually by the end of the decade.
Baricitinib, a medication discovered by Incyte (NASDAQ:INCY) and licensed to Lilly, is used to treat a variety of conditions including rheumatoid arthritis, alopecia areata, atopic dermatitis, and COVID-19. EVA Pharma will now receive certain manufacturing know-how from Lilly to produce and supply the drug across Africa.
EVA Pharma's CEO, Riad Armanious, highlighted the significance of localizing the production of this crucial medicine, ensuring the entire value chain is present on the continent. The company's high-containment facility is expected to commence sales of locally manufactured baricitinib by 2026.
The collaboration leverages EVA Pharma's extensive reach and manufacturing capabilities, which adhere to international standards, to help Lilly fulfill its commitment to increasing access to innovative treatments in lower-income regions.
Previously, since 2021, EVA Pharma has worked with Lilly to provide a sustainable supply of essential medicines in several African countries. Their partnership also includes efforts to make affordable insulin more accessible in 56 countries, primarily low- to middle-income, as announced in 2022.
Olumiant® (baricitinib), a Janus kinase (JAK) inhibitor, is prescribed for adults with conditions such as severe alopecia areata and active rheumatoid arthritis where other treatments have failed or were not well-tolerated. However, it carries serious side effect warnings, including increased risks of serious infections, cancer, major cardiovascular events, blood clots, and allergic reactions.
Lilly's global presence spans over 150 years of scientific discovery, with current focuses on diabetes, Alzheimer's disease, immune disorders, and cancer treatments. EVA Pharma, with a team of 5,000, manufactures over a million healthcare products daily and operates in more than 40 countries.
This press release statement, which includes forward-looking statements about the collaboration's potential impact, is based on Lilly's current expectations. There are no guarantees that the collaboration will achieve its goals or that the strategy will proceed as planned. The information is based on a press release statement.
In other recent news, Eli Lilly has seen a surge in its market value by nearly 20% due to strong sales and the introduction of a promising new weight-loss drug. The pharmaceutical giant has also received continued support from BMO Capital, which reiterated its Outperform rating, and Morgan Stanley (NYSE:MS), which maintained its Overweight rating. Eli Lilly has made Zepound, its obesity treatment drug, more accessible to patients by introducing 2.5mg and 5mg single-dose vials through its self-pay channels, Lilly Direct.
Eli Lilly's recent developments also include the acquisition of Morphic Holding (NASDAQ:MORF), Inc., adding a therapy for inflammatory bowel disease to its portfolio. However, the company's Alzheimer's drug, donanemab, is expected to face denial by the United Kingdom's National Health Service. On a positive note, Eli Lilly'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. These are some of the recent developments from Eli Lilly that may be of interest to investors.
InvestingPro Insights
As Eli Lilly and Company (NYSE: LLY) embarks on a new partnership with EVA Pharma to expand access to its immunological treatment baricitinib in Africa, the company's financial metrics reflect a robust market presence. According to InvestingPro data, Eli Lilly boasts a substantial market capitalization of $861.28 billion, underlining its significant role in the pharmaceutical industry. This is particularly relevant given Lilly's strategic 30x30 initiative, which aims to enhance healthcare access in resource-limited settings.
InvestingPro Tips indicate that Lilly has a history of consistent dividend growth, having raised its dividend for 9 consecutive years and maintained dividend payments for 54 consecutive years, a testament to its financial stability and commitment to shareholder returns. This financial strength could support the company's efforts in scaling up production and distribution of baricitinib across the African continent.
Moreover, the company's net income is expected to grow this year, which aligns with its expansion objectives. The positive outlook is further supported by the fact that 17 analysts have revised their earnings upwards for the upcoming period. Such a consensus from analysts could signal confidence in Lilly's ongoing projects and its overall growth trajectory.
InvestingPro also reveals that Eli Lilly is trading at a high earnings multiple, with a P/E ratio of 117.29. While this indicates a premium valuation, it is important to consider the company's strong return over the last year and the potential for continued profitability, as analysts predict the company will be profitable this year.
For readers interested in deeper financial analysis and additional insights, InvestingPro offers further tips on Eli Lilly, available at their dedicated page. Currently, there are over 20 additional InvestingPro Tips that can provide investors with a more comprehensive understanding of the company's financial health and market position.
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