RBC Capital Sees Eli Lilly’s (LLY) Retatrutide as Key Growth Driver despite Mixed Trial Results

Eli Lilly and Company (NYSE:LLY) is included among the 15 Dividend Stocks to Buy for Steady Income.

RBC Capital Sees Eli Lilly’s (LLY) Retatrutide as Key Growth Driver despite Mixed Trial Results

On March 19, RBC Capital said the overall tolerability and A1C reductions for Eli Lilly and Company (NYSE:LLY)’s retatrutide in the TRANSCEND-T2D-1 study came in worse than Mounjaro for type 2 diabetes patients. At the same time, weight loss and discontinuation rates leaned in favor of retatrutide.

The analyst described the drug as a “viable option” for patients where weight reduction is the main treatment goal. In practice, that trade-off matters. Some patients prioritize weight loss over strict A1C improvement, and this data speaks directly to that group. RBC sees retatrutide as a “key pillar” in Lilly’s growth and margin expansion story. It expects the drug to carry a premium price, given its likely use in more severe cases. The firm models a launch in 2027. It projects 2030 sales at $4.9B, which sits below the consensus estimate of $5.4 billion. RBC maintains an Outperform rating on the stock, with a $1,250 price target.

Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.

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