Eli Lilly (LLY) PT Raised to $93 at Leerink Partners on Higher Baricitinib Estimates

Leerink Partners analyst Seamus Fernandez reiterated an Outperform rating and bumped her price target on Eli Lilly (NYSE: LLY) to $93.00 (from $90.00) after raising sales estimates for baricitinib following ACR and KOL feedback.

Fernandez commented, "We are raising our forecast for baricitinib (JAK1/2 inhibitor, rheumatoid arthritis [RA] treatment) from ~$1.2B to ~$2.8B in 2026. This is based on strong RA-BEAM trial data presented at the ACR (American College of Rheumatology) and positive feedback from MEDACorp key opinion leaders (KOL) on the RA-BEAM and RA-BEGIN studies [see our 11/11 ACR summary note]. We believe LLY/INCY (OP) have a best-in-class oral therapy for RA in baricitinib. Not only do we expect baricitinib to quickly replace Xeljanz (tofacitinib from PFE [MP]), we also expect it to effectively compete in the front line RA treatment setting with standard of care anti-TNF therapies, especially if LLY prices it to compete with anti-TNF biosimilars. Separately, we are reducing our Alimta sales forecasts in 2015-2021 to reflect changing dynamics in lung cancer treatments, and we further update our P&L estimates assuming no benefit on COGS from Fx. We reiterate our Outperform rating and raise our DCF-based PT to $93 from $90 previously."

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 $80.70 yesterday.

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