Leerink Partners analyst David Risinger has maintained their neutral stance on LLY stock, giving a Hold rating on August 17.
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David Risinger has given his Hold rating due to a combination of factors related to Eli Lilly & Co’s orforglipron (OFG) clinical trials. One of the key considerations is the benefit-tolerability profile of OFG, particularly in terms of gastrointestinal (GI) side effects. In the Phase 3 trials for type 2 diabetes mellitus (T2DM), OFG exhibited higher long-term GI side effect rates compared to tirzepatide, which could affect patient adherence and increase the risk of discontinuation if these side effects persist.
Additionally, while the clinical trial discontinuation rates for OFG were not alarming, there is concern that real-world patients may face challenges with daily pill regimens, potentially leading to greater GI issues and higher discontinuation rates. The upcoming presentation of the ATTAIN-1 trial results is expected to provide more insights into the time-series incidence of GI side effects, which will be crucial for assessing OFG’s benefit-tolerability ratio compared to other treatments like semaglutide. Overall, these factors contribute to the decision to maintain a Hold rating on LLY.
In another report released on August 17, Daiwa also downgraded the stock to a Hold with a $700.00 price target.
LLY’s price has also changed moderately for the past six months – from $857.200 to $698.050, which is a -18.57% drop .