Market cap

Lilly overtakes biggest rival Pfizer by market capitalization as shares continue to soar – Indianapolis Business Journal

Like a kite that has caught a strong breeze, Eli Lilly and Co.’s stock has the ride of its life. Shares of the Indianapolis-based drugmaker have soared 41% in the past 52 weeks to around $331.

Lilly, as a company, is now worth more than rival Pfizer Inc., based on market capitalization – $314.2 billion for Lilly versus $296.5 billion for Pfizer. This is despite the fact that Pfizer is almost three times larger than Lilly in terms of annual sales.

But can Lilly’s shares continue to rise indefinitely?

According to some analysts, Lilly shares have just started to rise. On Friday, Morgan Stanley named Lilly a “top pick” and predicted the stock could hit $395 within a year, up another 20%.

Analyst Terence Flynn gave the stock an “overweight” rating and told customers that Lilly would get a boost over the next few years with a “robust” new product line, including Mounjaro, a new therapy that Lilly recently launched for type 2 diabetes that also has demonstrated potential to help obese people lose weight. (The weight loss indication, however, has not yet been submitted to federal regulators for approval.)

Morgan Stanley was just the latest investment bank to raise its price target on Lilly. On Thursday, Barclays raised its price target on Lilly shares to $355 and gave the stock an “overweight” rating, according to MarketBeat.com.

Last week, a Motley Fool analyst gave Lilly an unqualified endorsement, saying the company continues to innovate with new diabetes drugs and has a series of investigational drugs in its pipeline for cancer, immunology and Alzheimer’s disease.

“There aren’t many big pharma companies that have been bigger winners than Eli Lilly over the past year,” Motley Fool contributor Prosper Junior Bakiny wrote.

Of the 22 analysts who track Lilly, four have a strong buy recommendation, nine have a buy recommendation, eight have a hold recommendation and only five have an underperform recommendation, according to Yahoo Finance.

Analysts say the biggest boost for Lilly is Monjouro, the new diabetes drug, which JP Morgan analyst Chris Schott has predicted could peak sales of $20 billion for diabetes and obesity. (the latter may be under a different brand name; the generic name of both is tirzepatide).

But some analysts remain cautious. Edmund Ingham of Seeking Alpha said Lilly looks strong across the board, but faces too much market risk.

“Tirzepatide is a huge opportunity, but doctors have yet to be convinced that diet pills are better than lifestyle adjustments when it comes to treating obesity or even diabetes,” he said. written on June 24.

So how fast does monjouro take off? It’s hard to get a reading on prescriptions so early. Lilly will report sales of Monjouro and all other products with the second quarter earnings release on August 4.