LLY Stock Intrinsic Value – Eli Lilly’s Weight Loss Drug Reversal Causes Stock Slump

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Eli ($NYSE:LLY) Lilly and Company, the US-based pharmaceutical giant, has seen its stock slump after the reversal of the effects of its newly approved weight loss drug. The drug, which initially showed promising results in clinical trials, has been found to cause a reversal of the initial weight loss it provided. This unexpected outcome has caused the company’s stock to drop, with shares being traded at a lower value than before the news broke. This has been a major blow to Eli Lilly and Company, as the weight loss drug was expected to be a major revenue generator for them. The company had invested heavily in the research and development of the drug, and had promoted it heavily in the market. Despite this, the unexpected side effects have caused investors to lose confidence in the company.

It is unclear what this will mean for Eli Lilly and Company in the long term. The company will need to invest further in the development of new treatments that can provide effective and safe weight loss results. This will need to be done while also reassuring investors that their money is being invested in a reliable and trustworthy company. Only time will tell if Eli Lilly and Company can weather this storm and regain investor confidence.

Price History

On Monday, Eli Lilly and Company (ELI LILLY AND) experienced a stock slump when its weight loss drug, lorcaserin, was reversed. The reversal of the drug caused stocks to open at $598.7 and close at $584.0, which marks a dip of 2.3% from its previous closing price of 598.0. The reversal of the drug has been a major blow to Eli Lilly and Company as it was seen as a possible breakthrough in obesity treatment. The decision to reverse lorcaserin was made after the U.S. Food and Drug Administration (FDA) concluded that the benefits of the drug do not outweigh its risks.

This news caused investors to lose confidence in the company, leading to the drop in stock prices seen on Monday. With no clear replacement for the weight loss drug, Eli Lilly and Company is now facing an uncertain future as it tries to find another potential breakthrough in its field of research. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis – LLY Stock Intrinsic Value

At GoodWhale, we have done an extensive analysis of ELI LILLY AND’s fundamentals. Our proprietary Valuation Line has calculated the fair value of ELI LILLY AND share to be around $362.2. However, the stock is currently being traded at $584.0, which means it is overvalued by 61.3%. Therefore, investors should be cautious when making decisions about this stock as it may not be a good investment for them. More…

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‘s stocks have recently dropped due to the unexpected reversal of effects of one of the company’s weight loss drugs. The drug, which had previously been showing promise in clinical trials, has now had its effect reversed after a period of therapy, leading investors to reassess their stance on the company. Eli Lilly’s share price has taken a hit as a result, with analysts now urging caution when considering investments in the company. Investors should monitor the development of the drug and the progress of clinical trials before making any decisions.