Benzinga - by Nabaparna Bhattacharya, Benzinga Editor.
BofA Securities analyst Geoff Meacham reiterated the Buy rating on Eli Lilly And Company (NYSE:LLY), with a price forecast of $1,000.
An advisory committee to the U.S. Food and Drug Administration (FDA) delivered a favorable verdict on the company’s Alzheimer’s treatment, donanemab, declaring its benefits to surpass the associated risks.
The outcome will support regulatory approval of donanemab in patients with mild cognitive impairment/mild dementia, Meacham writes.
Moreover, regarding tau stratification, the speakers stressed their support for donanemab’s effectiveness across tau subgroups, including the no/very low tau population that was excluded from the placebo-controlled trials given the positive trends on biomarkers, the analyst adds.
Supported by the discussion, the analyst sees donanemab’s label to be similar to Biogen Inc. (NASDAQ:BIIB) and Eisai Co., Ltd. (OTC:ESAIY) Leqembi.
Check This Out: Biogen/Eisai’s Popular Alzheimer’s Drug Leqembi Is Seeing Slow Adoption – Here’s Why
The analyst adds that the speakers stressed the potential challenges of commercial implementation regarding dosing cessation, including how often to test amyloid levels.
While Lilly suggested testing should take place after the first year of treatment, it’s still unclear when prescribers should test amyloid levels again, according to the speakers.
On the flip side, better-than-expected launches of competing products may hurt the company. In addition, potential drug pricing system restructuring in the U.S. may be a potential risk.
However, a “robust” new product cycle and “differentiated growth” versus peers should help the stock, the analyst adds.
Price Action: LLY shares are trading lower by 0.04% to $864.65 at last check Tuesday.
Read Next: Tesla Rival Rivian Rolls Out Next-Gen R1S And R1T: Enhanced Performance, Design, And Tech Start At $69,900
Photo via Shutterstock
Latest Ratings for LLY
| Feb 2022 | Morgan Stanley | Maintains | Overweight | |
| Feb 2022 | Mizuho | Maintains | Buy | |
| Jan 2022 | Morgan Stanley | Maintains | Overweight |
View the Latest Analyst Ratings
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.