Written by Jea Yu | Reviewed by Chris MarkochMay 6, 2024 Share Share → Elon to Transform U.S.Economy? (From Porter & Company) (Ad) Key Points Eli Lilly reported a Q1 2024 EPS rise of 66%, beating analyst expectations by 11 cents, but slightly missed revenue expectations, coming in at $8.77 billion, falling short of $8.94 billion consensus estimates.Eli Lilly raised full-year 2024 EPS and full-year revenue guidance by $2 billion.Eli Lilly broke ground on its new $2.5 billion manufacturing facility in Germany, and its Concord, North Carolina facility expects to produce Wegovy shipments by year’s end.5 stocks we like better than Eli Lilly and Company Eli Lilly and Co.NYSE: LLY reported strong Q1 2024 earnings, causing shares to soar towards all-time highs initially, but a sell-the-news reaction triggered in the following days.The medical sector biopharmaceutical giant continues to gain from the GLP-1 drug weight loss trend that’s taken the mainstream by storm.
The momentum for GLP-1 drugs shows no sign of slowing down as demand continues to outstrip supply.
Analysts were pleasantly surprised when Lilly raised full-year 2024 top and bottom line forecasts, alleviating supply concerns.Eli Lilly competes in the GLP-1 segment against Novo Nordisk A/S NYSE: NVO and Viking Therapeutics Inc.NASDAQ: VKTX.Get Eli Lilly and Company alerts:Sign Up Novo Nordisk Warns of Falling Prices for GLP-1 Drugs A major reason that led to the sell-the-news reaction in Lilly stock stems from the statement by competitor Novo Nordisk that prices are dropping for its Wegovy medication.Novo Nordisk stated in a conference call that its Ozempic and Wegovy prices fell slightly lower in Q1 2024.This was attributed to higher volumes and increasing competition, which will lead to further price cuts this year.That news caused shares of Novo Nordisk and Eli Lilly to fall.Taking Steps to Bolster Capacity Eli Lilly and Company TodayLLYEli Lilly and Company$734.97 -20.94 (-2.77%) (As of 05/3/2024 08:52 PM ET)52-Week Range$419.80▼$800.78Dividend Yield0.71%P/E Ratio108.24Price Target$757.95Add to Watchlist Demand for its Tirzepatide dual agonist GLP-1/GIP drugs is so scorching hot that they’re hard to keep on the shelves.Capacity constraints are the only obstacle.
To boost capacity, Lilly just broke ground on a new $2.5 billion manufacturing facility in Germany.It expects its North Carolina site to commence production at year’s end.Ad InvestorPlaceElon’s New Device is About to Shock the WorldUsing this device you see above… Elon Musk just tested a new type of A.I.that according to Wired Magazine will usher in… “The next step in human evolution.” Click here to see the details because there’s a lot of money at stake.Expanding Indications As if demand wasn’t strong enough, Lilly is trying to expand the potential patient base for its GLP-1 drugs by expanding its indications for Zepbound.
Mounjaro is only approved for type 2 diabetes.
Zepbound is approved for chronic weight management.Since obesity can lead to many other diseases, Zepbound may prove to be beneficial for additional indications.Zepbound is currently undergoing Phase 2 clinical trials for non-alcoholic steatohepatitis (NASH) and Phase 3 trials for obstructive sleep apnea.
It’s also being studied for slowing the progress of Parkinson’s Disease.New GLP-1 data is expected to be ready in 2025.Daily Rectangle LLY formed a daily rectangle pattern.The upper trendline resistance formed at $794.67 on February 16, 2024.
It was rejected 5 times.The most recent was the breakout attempt after reporting its Q1 2024 earnings.
The lower trendline support sits at the 0.618 Fibonacci (fib) retracement level at $727.70, which has held against 3 breakdown attempts.The daily relative strength index (RSI) has slipped under the 50-band.
Pullback support levels are at $727.70, $707.84, $682.50 and $650.60.Robust Q1 2024 Results Lilly reported Q1 2024 EPS of $2.58, beating consensus analyst estimates by 11 cents.Revenues rose 26% YoY to $8.77 billion, falling short of $8.94 billion consensus estimates.
Top Drug Sellers Revenues were driven by Mounjaro, Zepbound, Jardiance (cardiovascular and kidney disease) and Verzenio (breast cancer) treatments.Trulicity sales fell 26.3% YoY to $1.456 billion.Verzenio revenues rose 39.9% YoY to $1.05 billion.Mounjaro sales rose 217.8% YoY to $1.806 billion.Jardiance sales rose $18.9% YoY to $686.5 million.
Upside Guidance Lilly raised full-year 2024 top and bottom line forecasts.Lilly expects 2024 EPS of $13.50 to $14.00, up from $12.20 to $12.70 versus $12.49 consensus estimates.
Full-year 2024 revenues are expected to be between $42.4 billion and $43.6 billion, raised from $40.4 billion to $41.6 billion versus $41.44 billion.Manufacturing Capacity Expansion Remains Top Priority Eli Lilly CEO David Ricks stated its top priority is to execute its manufacturing expansion plans.
The company will acquire a state-of-the-art facility from Nexus Pharmaceuticals in Prairie, Wisconsin.It’s been FDA-approved, and initial production will commence by the end of 2025.The $2.5 billion parenteral manufacturing facility in Germany broke ground recently.The company is working to maximize production and productivity in all its existing facilities.
The EMA approval for its upcoming multi-dose KwikPen for Mounjaro delivery is expected to unlock new supply capacity in Europe and international markets.Ricks commented, “We continue to make progress against our plans to increase manufacturing capacity, the most ambitious expansion plan in our company’s history.” Eli Lilly and Co.analyst ratings and price targets are on MarketBeat.→ Global crypto currency reset (41 major banks signed up) (From Stansberry Research) (Ad)Should you invest $1,000 in Eli Lilly and Company right now?Before you consider Eli Lilly and Company, you’ll want to hear this.MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on…and Eli Lilly and Company wasn’t on the list.While Eli Lilly and Company currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.View The Five Stocks Here 10 Best Cheap Stocks to Buy NowMarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued.Click the link below to see which companies made the list.Get This Free Report Companies Mentioned in This ArticleCompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price TargetEli Lilly and Company (LLY)4.7128 of 5 stars$734.97-2.8%0.71%108.24Moderate Buy$757.95Novo Nordisk A/S (NVO)2.2562 of 5 stars$123.05-0.8%1.08%42.43Moderate Buy$133.60Viking Therapeutics (VKTX)4.486 of 5 stars$76.97+1.6%N/A-82.76Buy$112.25 Compare These Stocks Add These Stocks to My Watchlist About Jea [email protected] AuthorTrading StrategiesExperienceJea Yu has been a contributing writer for MarketBeat since 2018.Areas of ExpertiseEquities, options, ETFs and futures; fundamental, qualitative, quantitative and technical analysis and pattern identification; active and swing trading; trading systems and methodology developmentEducationBachelor of Arts, University of Maryland, College ParkPast ExperienceU.S.
equity markets trader, writer and analyst for over 25 years.
Published four books by publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press.
Speaker at various expos and seminars and has been quoted and featured in USA Today, The Wall Street Journal, Traders Magazine, The Financial Times and various trade publications, including Stocks & Commodities, Active Trader and Online Investor.More From MarketBeatElon to Transform U.S.Economy? from Porter & CompanyThe 12 Most-Hated Stocks on Wall Streetfrom MarketBeatThe asset beating inflation by 4xfrom Colonial Metals7 dividend stocks with double-digit growth rates to bootfrom MarketBeatCould Your Accounts Be Frozen?from Allegiance Gold7 Stocks That May Be Next to Split Their Stockfrom MarketBeatDid You Get Your Free Bitcoin Yet?from Crypto Swap ProfitsThe Best Energy Stocks to Buy Nowfrom MarketBeat Featured Articles and OffersSeagate Technology Warns Cloud Demand is Heating Up Posted April 30, 2024View Seagate Technology Warns Cloud Demand is Heating Up The Gold Grab of the CenturyFrom Colonial Metals(Ad)View The Gold Grab of the CenturyBoston Scientific Bucks the Medtech Slow Down and Raises OutlookUpdated May 3, 2024View Boston Scientific Bucks the Medtech Slow Down and Raises OutlookHilton Demonstrates Asset Light is Right for Investors Posted April 30, 2024View Hilton Demonstrates Asset Light is Right for Investors NXP Semiconductors Will Set a New High Soon: $300 in SightPosted April 30, 2024View NXP Semiconductors Will Set a New High Soon: $300 in SightThe asset beating inflation by 4xFrom Colonial Metals(Ad)View The asset beating inflation by 4xonsemi: The Rebound is ON for This Chip StockPosted April 29, 2024View onsemi: The Rebound is ON for This Chip StockThe 3 Hottest Insiders Buys This Month Posted April 29, 2024View The 3 Hottest Insiders Buys This Month Crafting Your Portfolio’s Magnificent Seven: Top Stocks for 2024MarketBeat gives you seven stocks that you should be looking at to create your own Magnificent Seven in 2024.Related VideosBiotech Boom: Stocks Skyrocketing & What’s Next Search Headlines: Search Articles Get 30 Days of MarketBeat All Access Free Sign up for MarketBeat All Access to gain access to MarketBeat’s full suite of research tools: Best-in-Class Portfolio Monitoring View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks.Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.Stock Ideas and Recommendations Get daily stock ideas from top-performing Wall Street analysts.Get short term trading ideas from the MarketBeat Idea Engine.View which stocks are hot on social media with MarketBeat’s trending stocks report.
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