Top 30 S&P 500 Stocks by Index Weight

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12. Eli Lilly and Company (NYSE:LLY)

Index Weight: 1.27%

Number of Hedge Fund Holders: 137

Eli Lilly and Company (NYSE:LLY) is one of the top S&P 500 stocks by index weight. On April 15, BMO Capital reiterated an Outperform rating on Eli Lilly and Company (NYSE:LLY) and a $1,300 price target. The bullishness underscores the research firm’s confidence that the company is facing manageable post-marketing study requirements for the Foundayo treatment.

Following the US Food and Drug Administration approval of Foundayo on April 1 for chronic weight management, Eli Lilly is required to conduct post-marketing studies. The studies are to evaluate serious risks, including liver injury and gastric issues associated with the drug. Eli Lilly is already conducting the Phase 3 ACHIEVE-4 trial of daily Foundayo in patients with type 2 diabetes who are obese.

BMO Capital does not expect the studies to have any meaningful impact on the drug’s competitive edge. In addition, the post-market studies requirements are not an underlying risk to Eli Lily’s program but reflect the FDA’s conservatism.

Foundayo is a small-molecule drug that is easier and faster to produce, expected to give Eli Lilly a step up in the supply chain. According to BMO, its manufacturing advantage could be influential in the highly competitive oral obesity market.

Eli Lilly and Company (NYSE:LLY) is a major global pharmaceutical manufacturer, pioneering scientific research to develop medicines for chronic health issues. It specializes in treatments for diabetes, obesity, immunology, oncology, and neuroscience. The company is famously known for producing blockbuster GLP-1 drugs, Mounjaro and Zepbound.

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