Citi Expresses Optimism for Eli Lilly and Company (LLY)

Eli Lilly and Company (NYSE:LLY) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. On June 25, Citi reported that “compelling” data shows that Eli Lilly and Company (NYSE:LLY) and Novo Nordisk (NVO) have turned obesity into a treatable disease from a lifestyle-based condition. The firm models more than $40 billion in obesity sales by 2030, well above the consensus estimates of $25 billion.

Was Jim Cramer Right About Eli Lilly and Company (LLY)?

Citi stated that as the obesity space evolves from injectables to convenient orals, such as orforglipron, the emergence of a “dynamic” consumer-centric market is possible, and LillyDirect by Eli Lilly and Company (NYSE:LLY) is well-positioned to connect high consumer visibility for orforglipron with global access.

In a research note, Citi further stated that it estimated penetration rates via income-based tiers for pricing and out-of-pocket costs in low- and mid-body mass index patients. The results place Eli Lilly and Company’s (NYSE:LLY) consumer platform opportunity at $15B, which is not assumed in the firm’s model.

It thus believes that Eli Lilly and Company’s (NYSE:LLY) is in a position to expedite access outside the US, employing a centralized out-of-pocket payment model instead of the traditional country-by-country launch. It contended that an “income-based tiered pricing of orforglipron via LillyDirect could unlock unprecedented volume, all the while allowing it to maintain overall pricing power.”

Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies. Investors are bullish on Eli Lilly and Company (NYSE:LLY) due to its in-demand GLP-1 drugs, used to treat diabetes and obesity, which are still in their early growth stages, and the company’s strong financials.

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