Eli Lilly and Co (NYSE:LLY) shares are up again Thursday as its weight loss drug retatrutide continues to garner attention from investors and analysts alike.
UBS reiterated its Buy rating and $498 price target for the company following the results of a Phase 2 trial which found that patients treated with injectible retatrutide saw a median weight loss of 58 pounds, or 24.2%, after 48 weeks.
This drug “sets a new bar for weight loss,” UBS analysts wrote, calling the results “highly impressive and in-line with our preview.”
Retatrutide is now in Phase 3 for obesity and is expected to launch in 2027.
“Overall, the retatrutide data has raised the bar for the competition and suggests LLY will maintain a dominant position in the diabetes/obesity space through the end of the decade,” analysts added.
Like other rival treatments Ozempic, Wegovy, and Mounjaro, retatrutide is a weekly injection of hormones that tricks the brain into thinking a person is already full.
However, retatrutide’s 24.2% weight loss at 48 weeks is well ahead of Wegovy's (15% at 48 weeks) and Mounjaro (20% at 48 weeks).
Discontinuations at 36 weeks were about 26%, with 16% due to adverse effects, which analysts said is expected at this stage prior to dose optimization in phase 3.
Shares of Eli Lilly climbed 1.4% Thursday to $464.88.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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