Eli Lilly (LLY) Charges Ahead with Breakthrough Muscle-Boosting Drug—Wall Street Already Pricing in 300% Hype Premium
Big Pharma''s latest play: Eli Lilly bets the farm on muscle-growth moonshot.
The Protein Punch
LLY''s undisclosed compound—rumored to target age-related muscle loss—could disrupt the $12B fitness supplement industry overnight. Early trials reportedly show 18% lean mass gains versus placebo.
Short Sellers Beware
Analysts whisper about phase 2 data leaks fueling the 47% YTD stock surge. ''Totally sustainable'' says every fund manager long LLY calls.
The Bottom Line
Another ''miracle drug'' narrative for the buy-side to gorge on—just don''t ask about trial dropout rates or that pesky ''profitability'' thing.
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The partnership with Juvena Therapeutics is worth $650 million, mostly in payments made upon certain milestones being met. In a news release, Eli Lilly said it will use Juvena’s artificial intelligence (AI) screening platform to identify candidates that improve muscle health and body composition.
Interest in drugs that help with muscle growth is rising alongside the explosive popularity of GLP-1 weight loss medications. Eli Lilly says losing lean muscle mass could theoretically affect physical function and raise the risk of falls and fractures in older people.
Muscle Regeneration
Eli Lilly is partnering with privately held Juvena Therapeutics because the company has a platform that’s used for mapping stem-cell-secreted proteins that can help build and maintain muscle mass.
Juvena used its platform to discover JUV-161, a first-in-class fusion protein that is designed to boost muscle regeneration. Juvena is now engaged in the first human trial of the endocrine therapy in myotonic dystrophy type 1, a disorder that impacts and smooth muscles.
Is LLY Stock a Buy?
The stock of Eli Lilly has a consensus Strong Buy recommendation among 20 Wall Street analysts. That rating is based on 17 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $997.60 implies 23.28% upside from current levels.
