Cantor Fitzgerald Reiterates Overweight on Eli Lilly (LLY) Despite Medicare Coverage Risks, Still Sees Clear Path for Coverage Contingent on Successful Phase 3

Cantor Fitzgerald analyst Louise Chen reiterated an Overweight rating and $335.00 price target on Eli Lilly (NYSE: LLY) in light of the upcoming Medicare coverage decision for anti-amyloid therapies.

The analyst quotes: "Our work suggests that while significant changes to the final Medicare coverage decision for anti-amyloid therapies may be unlikely, based on what we know now, LLY's donanemab and other Phase 3 assets could still have a clear path forward for future coverage in Alzheimer's disease (AD) if they report positive Phase 3 data in 2022+. Therefore, we maintain our Overweight rating and 12-month PT of $335 for LLY shares in front of what we expect to be a restrictive final decision for anti- amyloid therapies. We are ~halfway through the 30-day period for public comments following CMS' (Centers for Medicare & Medicaid Services) proposed National Coverage Determination (NCD) decision for amyloid-directed monoclonal antibodies (mAbs). After this period ends on 2.10.22, CMS is expected to issue its final National Coverage Determination (NCD) decision in April 2022. Key players that could be affected by this decision include Biogen (NADSAQ: BIIB) and Eisai, LLY, and Roche"

For an analyst ratings summary and ratings history on Eli Lilly click here. For more ratings news on Eli Lilly click here.

Shares of Eli Lilly closed at $237.86 yesterday.

Written by Vlad Schepkov | [email protected]

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