JPMorgan has highlighted the promising potential of Eli Lilly’s (LLY) latest Phase 3 trial results for orforglipron, a treatment for type 2 diabetes, noting the drug's "highly competitive profile." The findings suggest that orforglipron may carve out a significant presence in the market due to its strong tolerability and efficacy.
Key to this evaluation is the tolerability data from the extended titration phase, where the highest dose recorded an 8% discontinuation rate, which is notably below the previously anticipated low-teens percentage. This outcome boosts confidence in the drug’s viability and its ability to lower risks associated with this category of treatments.
The implications of these findings are significant for Structure Therapeutics (GPCR, Financial), as the positive data could facilitate a double-digit percentage increase in share value due to positive market sentiment. For Viking Therapeutics (VKTX), the data provides an indirect benefit by mitigating market risks associated with emerging first-in-class competitors. Nonetheless, Viking's oral VK-2735 is expected to maintain its position due to its own favorable tolerability profile.
JPMorgan's analysis suggests that while Eli Lilly's advancements could limit the potential of late-stage injectable treatments, they still recognize a distinct niche for Viking's offerings in the evolving diabetes treatment landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Structure Therapeutics Inc (GPCR, Financial) is $81.42 with a high estimate of $118.00 and a low estimate of $50.00. The average target implies an upside of 270.50% from the current price of $21.98. More detailed estimate data can be found on the Structure Therapeutics Inc (GPCR) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Structure Therapeutics Inc's (GPCR, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
