Key insights
- RBC Capital reiterated an Outperform rating on Eli Lilly (LLY) with a $1,250 price target, focusing on the upcoming orforglipron approval (PDUFA date April 10) and launch. While Structure Therapeutics' obesity drug data is comparable, it doesn't pose an immediate threat to LLY. The report is mildly bullish as it reinforces a positive outlook on LLY's obesity drug pipeline.
Investing.com - RBC Capital reiterated an Outperform rating and $1,250 price target on Eli Lilly stock (NYSE:LLY) on Monday.
The firm commented on Structure Therapeutics’ updated 44-week results from its Phase 2 ACCESS II trial of aleniglipron in obesity released Monday morning. Structure Therapeutics, with a market cap of $3.81 billion, has delivered a 155% return over the past year despite remaining unprofitable, according to InvestingPro data. InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial metrics for GPCR. The results appear comparable to Eli Lilly’s Phase 2 data for orforglipron, with Structure Therapeutics planning to begin a Phase 3 study in the second half of 2026.
RBC Capital noted the results add to discussion around the oral obesity market but do not present a meaningfully differentiated profile from orforglipron. The firm also pointed out that aleniglipron represents another potential oral option that will compete for market share in the future.
The firm observed that the results are modestly affected by the limited number of patients in the placebo arm, with 12 patients gaining weight on average during the trial, which is atypical for obesity studies.
RBC Capital stated its focus for Eli Lilly remains on the pending orforglipron approval, which has an April 10 PDUFA date, and the subsequent launch.
In other recent news, Structure Therapeutics has seen several updates that may interest investors. The company received a boost from H.C. Wainwright, which raised its price target to $114, maintaining a Buy rating due to competitive developments in the diabetes and weight loss drug market. Guggenheim also increased its price target to $140, citing positive developments from the ACCESS Phase 2b trial for the obesity drug aleniglipron. Meanwhile, Citizens lowered its price target slightly to $113, though it maintained a Market Outperform rating, highlighting the company’s pipeline expansion and upcoming readouts for aleniglipron. Cantor Fitzgerald noted that Structure Therapeutics is expected to release significant 44-week data from the aleniglipron Phase 2B ACCESS II trial in the first quarter of 2026. These developments come as Novo Nordisk, a competitor, faces a weaker sales outlook for 2026, which could impact the competitive landscape. Overall, analysts appear optimistic about Structure Therapeutics’ positioning in the market, with multiple firms adjusting their price targets based on recent data and future expectations.
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