TD Cowen Maintains Buy on Eli Lilly (LLY) After Government Deal

Eli Lilly and Company (NYSE:LLY) is one of the 15 Best Aggressive Growth Stocks to Buy Right Now. On November 7, TD Cowen reiterated its Buy rating on Eli Lilly and Company (NYSE:LLY) with a price target of $960. This update came after the company announced an agreement with the US government to expand access to obesity medicines.

Starting April 1, 2026, Medicare beneficiaries will not have to pay more than $50 per month for Zepbound (tirzepatide), which comes in a multi-dose pen, and for orforglipron, Eli Lilly and Company’s (NYSE:LLY) once-daily pill for obesity. This depends on both medicines getting approval from the FDA. States will also be able to make these medicines available through Medicaid.

After approval from the FDA, patients paying on their own would be able to get these medicines through LillyDirect’s self-pay pharmacy channel. The lowest dose of Zepbound multi-dose pen will cost $299, with more doses up to $449, which is $50 lower than current direct-to-patient prices. Orforglipron will start at $149 for the lowest dose, with additional doses up to $399.

Eli Lilly and Company (NYSE:LLY) also shared that Emgality (galcanezumab-gnlm), Trulicity (dulaglutide), and Mounjaro (tirzepatide) will also be sold to self-pay patients through LillyDirect at prices 50-60% less than the current list prices.

TD Cowen noted that while there is still some uncertainty, the long-term impact of this pricing deal could be “relatively modest.” The research firm noted that the agreement speeds up price drops for these medicines but highlighted that this could be offset by more sales and patient adherence. TD Cowen also sees Medicare coverage for Zepbound as a clear positive sign.

Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company focused on discovering, developing, and delivering innovative medicines.

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Disclosure: None. This article is originally published at Insider Monkey.