Citi analyst Joanne Wuensch says medical technology diabetes stocks were pressured following Eli Lilly’s (LLY) three-year, Surmount-1 results evaluating Tirzepatide, regular physical activity, and a reduced-calorie diet on prediabetes patients. The study demonstrated sustained weight loss and a reduction in type 2 diabetes progression by 94% in prediabetic/obese patients, the analyst tells investors in a research note. The firm reminds investors the type 2 population is large, under penetrated, and that it already evaluated continuous glucose monitor and pump use in a GLP-1 environment. Citi views the share selloff as overdone and keeps Buy ratings on Abbott Laboratories (ABT), DexCom (DXCM), Insulet (PODD) and Tandem Diabetes (TNDM) along with a Neutral rating on Medtronic (MDT).
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