Street View: Eli Lilly well positioned in weight-loss market despite CVS's decision
Eli Lilly LLY.N on Thursday downplayed CVS Health's CVS.N decision to drop the company's obesity drug Zepbound from some lists of medicines it covers for reimbursement
CVS said it would drop coverage from July 1, but keep reimbursing for rival GLP-1 weight-loss drug Wegovy after negotiating a more favorable price from Novo Nordisk NOVOb.CO
WEIGHT LOSS MARKET HOLDING UP
BofA Global Research ("buy," PO: $1000) says the CVS news does not mark a major, new negative trend, instead, it reflects "the reality that no company ever has all payers locked up"
J.P.Morgan ("overweight," PT: $1100) says the CVS update to potentially only impact a small portion of LLY's Zepbound business
Brokerage adds, "LLY to continue to see share gains relative to Wegovy in the broader obesity space as well as growth for the obesity market to remain healthy as a whole"
Morgan Stanley ("overweight," PT: $1133) says in addition to Zepbound, LLY's drug pipeline under development like an oral GLP-1 medication, Orforglipron will strengthen co's position within the future obesity market
Bernstein ("outperform," PT: $1100) says Novo and Lilly's battle is adding meaningful price pressure across incretin drugs
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