Eli Lilly Stock Upgraded as Medicare Expands Coverage for Obesity Drugs
Leerink Partners has upgraded Eli Lilly (LLY) to a Buy rating, citing increased adoption prospects for its weight-loss medications following Medicare and Medicaid coverage agreements. The investment bank raised its price target to $1,104, anticipating broader accessibility by 2027.
The TRUMP administration's pricing deal caps patient costs at $50/month for GLP-1 obesity treatments, a significant reduction from current $1,000/month out-of-pocket expenses. This policy shift strengthens Eli Lilly's competitive position against Novo Nordisk in the rapidly expanding metabolic therapeutics market.
Analysts project the coverage expansion will drive volume growth, particularly with upcoming oral formulations. The MOVE reflects growing institutional acceptance of obesity pharmacotherapies as essential healthcare interventions rather than elective treatments.
