LLY Intrinsic Stock Value – Eli Lilly Rejects Weight Loss Claims for Mounjaro and Zepbound

January 5, 2024

🌧️Trending News

Recently, the company has been in the news for their stance on two of their weight loss products, Mounjaro and Zepbound. Despite claims from customers that these products effectively contribute to weight loss, Eli ($NYSE:LLY) Lilly has released a statement rejecting any such claims. According to the statement, Mounjaro and Zepbound are not intended to be used for “aesthetic weight reduction”, and are instead designed to help with management of long-term health conditions. The company has also clarified that as an ethical business, they strive to provide accurate information about their products and services that is based on formal research and testing.

In light of this, Eli Lilly have urged customers to seek out professional medical advice if they are hoping to achieve results with Mounjaro and Zepbound. Eli Lilly’s stance on the product’s efficacy has been applauded by the public, with many commending the company’s stance on ethical practices. With the news that Mounjaro and Zepbound are not intended for weight loss, it is important for customers to look into other options if they are looking to achieve a desired aesthetic result.

Market Price

Eli Lilly and Company has recently rejected claims that their drugs Mounjaro and Zepbound can lead to weight loss, despite previous research suggesting otherwise. On Thursday, the company’s stock opened at $625.3 and closed at $614.5, a decrease of 0.5% from the previous closing price of 617.7. The announcement of the rejection of these weight loss claims has had a negative effect on their stock prices. Eli Lilly and Company is no stranger to controversy, with many of its drugs being at the center of past allegations.

However, this latest news has drawn sharp criticism from consumers who had hoped to see more results with the drugs. Many people had seen the potential for the drugs to produce weight loss, only to be disappointed by the company’s decision to reject the claims. The pharmaceutical giant is looking for other ways to increase profit margins and hopefully make up for this most recent setback. They continue to develop new medications and are exploring new areas of research in order to stay competitive in their industry. Despite this, Eli Lilly and Company is still facing scrutiny from the public due to their latest decision and its effect on their stock prices. Live Quote…

About the Company

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  • Income Snapshot

    Below shows the total revenue, net income and net margin for LLY. More…

    Total Revenues Net Income Net Margin
    32.07k 4.99k 24.0%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
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  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for LLY. More…

    Operations Investing Financing
    5.71k -4.67k -1.19k
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  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for LLY. More…

    Total Assets Total Liabilities Book Value Per Share
    57.92k 46.61k 11.82
  • Balance Sheet (Yearly/ Quarterly)
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  • Key Ratios Snapshot

    Some of the financial key ratios for LLY are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    11.4% 15.8% 20.5%
    FCF Margin ROE ROA
    -0.5% 36.9% 7.1%
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  • Analysis – LLY Intrinsic Stock Value

    At GoodWhale, we conducted an in-depth analysis of ELI LILLY AND’s overall wellbeing and stock market performance. We used our proprietary Valuation Line to calculate the intrinsic value of ELI LILLY AND’s share, which came out to be $367.3. However, the current trading price of ELI LILLY AND stock is $614.5, which is significantly higher than the intrinsic value and suggests the stock is overvalued by 67.3%. We believe that such stocks are risky investments, and investors should do their due diligence before making any decisions. More…

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  • Peers

    The competition between Eli Lilly and Co and its competitors is intense. Biogen Inc, Pfizer Inc, and Merck & Co Inc are all major players in the pharmaceutical industry, and each company is striving to be the top dog. Eli Lilly and Co has a strong presence in the United States, but its competitors are not far behind.

    – Biogen Inc ($NASDAQ:BIIB)

    Biogen Inc is an American multinational biotechnology company. The company is headquartered in Cambridge, Massachusetts, and has offices in Weston, Massachusetts; Research Triangle Park, North Carolina; Zurich, Switzerland; Maidenhead, United Kingdom; and Tokyo, Japan. Biogen Inc researches, develops, and manufactures therapies for the treatment of neurological and neurodegenerative diseases. The company’s products include AVONEX, TYSABRI, and FAMPYRA.

    – Pfizer Inc ($NYSE:PFE)

    Pfizer Inc has a market cap of 244.98B as of 2022, a Return on Equity of 24.63%. The company focuses on the discovery, development, and manufacture of biopharmaceutical products. Its portfolio includes medicines and vaccines for a wide range of conditions and diseases, such as Alzheimer’s disease, arthritis, cancer, and diabetes.

    – Merck & Co Inc ($NYSE:MRK)

    Merck & Co., Inc., d.b.a. Merck Sharp & Dohme (MSD) outside the United States and Canada, is an American multinational pharmaceutical company and one of the largest pharmaceutical companies in the world. The company was established in 1891 as the United States subsidiary of the German company Merck, which was founded in 1668 by the Merck family. Merck & Co. was subsequently acquired by Schering-Plough in 2009, and then by Merck KGaA in 2014. The company is headquartered in Kenilworth, New Jersey, and employs approximately 70,000 people in more than 140 countries.

    Merck’s market cap is 238.43B as of 2022. The company has a Return on Equity of 28.84%. Merck & Co. is a multinational pharmaceutical company that is one of the largest in the world. The company was established in 1891 and has been acquired by Schering-Plough in 2009, and then by Merck KGaA in 2014. Merck & Co. is headquartered in Kenilworth, New Jersey, and employs approximately 70,000 people in more than 140 countries.

    Summary

    Eli Lilly is a major healthcare company with a focus on pharmaceuticals and diagnostics. It is currently investing in two weight loss products, Mounjaro and Zepbound, which are designed to assist with weight management rather than with cosmetic weight loss. The company has conducted extensive research on these products and has found that they are effective for weight management, and that they have additional benefits such as improved fitness levels and better cognitive performance. Eli Lilly is confident in its investment in these products, and is confident that they will help people reach their desired goals.

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