Brave Hands Picked Up Some of Eli Lilly's Wealth
Did I mention we can use that chance of picking up some unusually cheap shares of Eli Lilly (LLY)? We just discussed this excellent opportunity in detail in early August hot on a trail of LLY's plummet to $640. The next day there was an ultimate low around $625. Well, over the next couple of weeks the stock price recovered by as much 15%. Again, yesterday LLY gained another 5.85%, the figure similar to the famous and nearly pure gold standard, in one trading session. Pre-market trading on August 27, found LLY another full percentage point higher, at about $744 per share. All it took was brave hands, and they found a little wealth, indeed. But for all the other indecisive ones, now is not the time of sucking lemons yet. I bet, the price will continue to grow from the current $735 to at least my target range between $825 and $875, since the very reason for recent doubt, which was the not entirely convincing initial clinical trials of the new oral drug for weight loss, has been eliminated. Now everything is much better with the pill, and the expert expectations of super extra profits in the tens of billions of dollars are back again!
LLY's Orforglipron pill reportedly met its primary and secondary goals. This means, not only regulatory approvals but also global popularity is coming as soon as the end of this year. The oral weight loss medication Orforglipron is opposed to all similar kinds of medicine based on injections. And the new pill showed strong performance in testing groups of patients with both obesity and type 2 diabetes, "the higher-risk and more difficult-to-treat population", a new research note from William Blair said. Participants taking the highest dose of the drug had a significant weight loss over 72 weeks. Based on analysis of three Phase III studies, it revealed the "highest competitive advantage in diabetes" which is affecting roughly 15% of the adult population in both the US and Europe. Type 2 diabetes patients often manage multiple "comorbid conditions such as hypertension or dyslipidaemia with oral medications", which makes another advantage for Lilly’s oral formulation. "It is therefore our opinion that Orforglipron could be seamlessly incorporated into patients’ daily routines, thereby encouraging uptake," William Blair concluded in its report.
The Bank of America's securities branch hastily reiterated its Buy rating on Eli Lilly in the middle of this week. They highlighted an expected sales growth of approximately 35% in 2025, well surpassing the industry average. "We believe that orfor [Orforglipron] could represent a double-digit billion dollar opportunity," Truist Securities said in a client's note on Tuesday. August 26. I wonder where all those smart guys were when a bunch of brave souls were withstanding bearish headwinds on the last frontier about $100 per share below than the currently quite comfortable price levels? Then, you see, they turned away from the white and blue pill, but now they are ready to swallow it at a much higher price. Anyway, we're all in the same bullish boat now.
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