Lilly manufacturing expansion update ‘significantly positive,’ says BMO Capital

BMO Capital made no change to the firm’s Outperform rating or $1,001 price target on Eli Lilly shares, telling investors in a research note that the company’s announced plans to invest an additional $5.3B in expanding manufacturing at their Indiana API facility works to further entrench the company’s manufacturing moat in the face of unprecedented demand. The prudent investment in growing manufacturing capacity could help to ease constraints for currently approved and pipeline therapies, including Mounjaro and Zepbound, and the update is significantly positive for Lilly and gives BMO confidence that the demand for Lilly’s incretin agents is expected to only grow as efficacy becomes more broadly understood and accepted.