We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eli Lilly (LLY) to Buy Versanis, Strengthen Obesity Portfolio
Read MoreHide Full Article
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire private biotech Versanis, which is expected to strengthen its position in the obesity market.
Versanis’ lead pipeline candidate is bimagrumab, a monoclonal antibody being developed in a phase IIb study alone and in combination with semaglutide in adults who are overweight or obese.
Semaglutide, a GLP-1 receptor agonist, is sold by Lilly’s chief competitor Novo Nordisk (NVO - Free Report) , under the brand name Wegovy as an anti-obesity medication. Wegovy is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. It markets semaglutide as a once-daily pre-filled pen by the brand name of Ozempic and as an oral pill by the name of Rybelsus for treating type II diabetes.
Bimagrumab has the potential to show better-quality weight loss by reducing fat mass while preserving muscle mass in people who are obese or have obesity-related complications. In a previous phase II study, bimagrumab resulted in a placebo-adjusted fat mass loss of approximately 22% coupled with 4.5% lean mass gain, despite minimal change in caloric intake.
Lilly’s stock was up 3.4% on Friday in response to the news. Lilly’s stock has risen 22.8% this year so far against a decrease of 0.9% for the industry.
Image Source: Zacks Investment Research
For the deal, Lilly has agreed to pay up to $1.93 billion in cash, inclusive of an undisclosed upfront payment and further payments upon achievement of some development and sales milestones. The companies did not mention when the transaction is expected to be closed.
Companies developing weight loss drugs are in great demand, fueled by the success of Novo Nordisk’s Wegovy and also strong data from obesity studies of Lilly’s new drug Mounjaro (tirzepatide), a dual GIP and GLP-1 receptor agonist. Mounjaro is already approved for type II diabetes and is generating impressive sales. Mounjaro showed a superior weight-loss reduction in clinical studies for the obesity indication. Lilly has initiated a rolling submission in the United States for tirzepatide in obesity that is expected to be completed soon while a regulatory application has already been filed in the EU.
Some better-ranked biotech stocks are Alkermes (ALKS - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , both with a Zacks Rank #1.
Estimates for Alkermes’ 2023 earnings per share have increased from 20 cents to $1.02 over the past 60 days. Estimates for 2024 have jumped from $1.73 per share to $2.08 in the same timeframe. Alkermes’ stock has risen 16.5% this year so far.
Alkermes beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 90.83%, on average.
Estimates for Ligand Pharmaceuticals’ earnings per share have increased from $4.79 to $5.25 over the past 60 days, while those for 2024 have gone up from $4.58 per share to $4.69 per share. Ligand Pharmaceuticals’ stock has risen 1.6% this year so far.
Ligand Pharmaceuticals beat earnings expectations in two of the trailing four quarters while missing in the other two. The company delivered a four-quarter earnings surprise of 21.50%, on average.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eli Lilly (LLY) to Buy Versanis, Strengthen Obesity Portfolio
Eli Lilly and Company (LLY - Free Report) announced a definitive agreement to acquire private biotech Versanis, which is expected to strengthen its position in the obesity market.
Versanis’ lead pipeline candidate is bimagrumab, a monoclonal antibody being developed in a phase IIb study alone and in combination with semaglutide in adults who are overweight or obese.
Semaglutide, a GLP-1 receptor agonist, is sold by Lilly’s chief competitor Novo Nordisk (NVO - Free Report) , under the brand name Wegovy as an anti-obesity medication. Wegovy is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. It markets semaglutide as a once-daily pre-filled pen by the brand name of Ozempic and as an oral pill by the name of Rybelsus for treating type II diabetes.
Bimagrumab has the potential to show better-quality weight loss by reducing fat mass while preserving muscle mass in people who are obese or have obesity-related complications. In a previous phase II study, bimagrumab resulted in a placebo-adjusted fat mass loss of approximately 22% coupled with 4.5% lean mass gain, despite minimal change in caloric intake.
Lilly’s stock was up 3.4% on Friday in response to the news. Lilly’s stock has risen 22.8% this year so far against a decrease of 0.9% for the industry.
Image Source: Zacks Investment Research
For the deal, Lilly has agreed to pay up to $1.93 billion in cash, inclusive of an undisclosed upfront payment and further payments upon achievement of some development and sales milestones. The companies did not mention when the transaction is expected to be closed.
Companies developing weight loss drugs are in great demand, fueled by the success of Novo Nordisk’s Wegovy and also strong data from obesity studies of Lilly’s new drug Mounjaro (tirzepatide), a dual GIP and GLP-1 receptor agonist. Mounjaro is already approved for type II diabetes and is generating impressive sales. Mounjaro showed a superior weight-loss reduction in clinical studies for the obesity indication. Lilly has initiated a rolling submission in the United States for tirzepatide in obesity that is expected to be completed soon while a regulatory application has already been filed in the EU.
Zacks Rank & Stocks to Consider
Lilly currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked biotech stocks are Alkermes (ALKS - Free Report) and Ligand Pharmaceuticals (LGND - Free Report) , both with a Zacks Rank #1.
Estimates for Alkermes’ 2023 earnings per share have increased from 20 cents to $1.02 over the past 60 days. Estimates for 2024 have jumped from $1.73 per share to $2.08 in the same timeframe. Alkermes’ stock has risen 16.5% this year so far.
Alkermes beat earnings expectations in each of the trailing four quarters. The company delivered a four-quarter earnings surprise of 90.83%, on average.
Estimates for Ligand Pharmaceuticals’ earnings per share have increased from $4.79 to $5.25 over the past 60 days, while those for 2024 have gone up from $4.58 per share to $4.69 per share. Ligand Pharmaceuticals’ stock has risen 1.6% this year so far.
Ligand Pharmaceuticals beat earnings expectations in two of the trailing four quarters while missing in the other two. The company delivered a four-quarter earnings surprise of 21.50%, on average.