Eli Lilly and Co. (LLY, Financial) has initiated legal action against four companies accused of selling unauthorized versions of its medication containing tirzepatide. This move follows a recent decision by a U.S. judge that restricted pharmacies from producing imitations of the company's weight-loss and diabetes treatments.
The pharmaceutical giant's lawsuit targets Mochi Health Corp, Fella Health and Delilah, Willow Health Services, and Henry Meds. These companies are alleged to have manufactured and distributed unapproved tirzepatide products. Previously, compounding pharmacies had been able to create obesity drug copies due to existing shortages, but the recent legal developments have changed this scenario.
Eli Lilly's legal actions underscore the company's effort to protect its intellectual property and ensure that only approved versions of its medications are available to consumers. The outcome of these lawsuits could have significant implications for the pharmaceutical compounding industry and the availability of obesity and diabetes treatments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Eli Lilly and Co (LLY, Financial) is $1,016.05 with a high estimate of $1,190.00 and a low estimate of $800.00. The average target implies an upside of 22.78% from the current price of $827.54. More detailed estimate data can be found on the Eli Lilly and Co (LLY) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Eli Lilly and Co's (LLY, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Eli Lilly and Co (LLY, Financial) in one year is $1126.67, suggesting a upside of 36.15% from the current price of $827.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Eli Lilly and Co (LLY) Summary page.
