Eli Lilly wins buy as Citi resumes coverage on obesity prospects

After a period of rating suspensions, Citi resumed its coverage on Eli Lilly (NYSE:LLY) with a buy recommendation and a $1,060 price target, citing the company’s GLP-1 pipeline, including its blockbuster obesity therapy tirzepatide.

Analyst Peter Verdult based his bullish thesis on raised forecasts (near to medium term) for tirzepatide, indicated for diabetes and obesity as Mounjaro and Zepbound, respectively. The analyst used the latest reported sales for the drug as well as script trends and guidance to arrive at the conclusion.

Additionally, he cited raised expectations for orforglipron, the Indiana-based drugmaker’s oral GLP-1 agonist currently undergoing studies for weight loss.

Due to a risk of an elevated heart rate and a higher incidence of nausea, as disclosed at a recent medical event in Europe, the analyst argued that Roche’s (OTCQX:RHHBY) (OTCQX:RHHBF) oral GLP-1 candidate CT-996 is unlikely to challenge orforglipron.