According to a recent report by BMO Capital Markets analysts, Eli Lilly & Co. (LLY) is well-positioned to dominate the rapidly growing U.S. market for obesity drugs well into the 2030s. While Novo Nordisk (NVO), the maker of Ozempic and Wegovy, is predicted to maintain a significant share of the market, Lilly holds an advantage due to its wide range of effective products. These products include the oral orforglipron, injectable tirzepatide, and the upcoming next-generation retatrutide.
Furthermore, Lilly’s investments in manufacturing and strategic planning for branded rollouts serve as additional factors that will contribute to securing its dominance in the market. BMO Capital Markets states that there is “unprecedented potential” for the overall obesity-drug market in the U.S. and beyond. The analysts estimate that these drugs will reach peak global sales of $100 billion by 2035.
In light of these findings, BMO Capital Markets analysts have given Lilly shares an outperform rating, with a target price of $633. While the leaders of the obesity-drug market experienced a slight decline on Thursday, Lilly shares have shown resilience with a 0.5% premarket gain on Friday. So far this year, Lilly shares have gained an impressive 50%, while Novo shares have seen a 1% premarket gain and are up by 35% year-to-date.
