Eli Lilly’s (LLY) weight-loss medications may have benefits for people suffering from Alzheimer’s disease, according to new studies.
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So-called GLP-1 drugs have already been found to have benefits beyond diabetes and obesity. The medications can also help improve outcomes for patients with cardiovascular and liver disease. Now, data from two clinical trials suggest that the drugs may also have positive effects on people with early Alzheimer’s disease.
The preliminary study results are not conclusive and more data are needed, caution analysts. However, if the clinical studies conclude that the weight-loss drugs can also be used to treat Alzheimer’s disease, it could provide a boost to Eli Lilly’s sales and stock price.
Miracle Drug?
Given their myriad uses and benefits, many analysts refer to GLP-1 medications as modern-day miracle drugs or wonder drugs. It’s not clear exactly why the medications have so many applications beyond weight loss, except that researchers have found the drugs lower inflammation in the body.
So far, little is known or understood about the potential impact of GLP-1 drugs such as Eli Lilly’s Zepbound on the slowing or prevention of Alzheimer’s disease. The company’s working hypothesis is that the drugs target the neuroinflammatory processes that impact the brain-wasting disease. More will be known when the clinical trials end later this year.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 16 Buy and four Hold recommendations issued in the last three months. The average LLY price target of $909.31 implies 26.77% upside from current levels.
