Hello Stock Traders,
Eli Lilly might just be the next healthcare blockbuster. That’s the bold prediction from Goldman Sachs, who envisions a scenario where the pharmaceutical giant’s stock could soar by a staggering 140% by 2028 – propelled by a surge in demand for its weight-loss drugs.
It’s not just about slimmer waistlines, though. A class of drugs called GLP-1s, already used for diabetes, are showing remarkable promise in tackling obesity and potentially a whole lot more. Goldman paints a picture of a future where nearly 20% of Americans, that’s roughly 68 million people, could be popping these little weight-loss wonders by 2028.
This wouldn’t just be a boon for public health – it could be a goldmine for Eli Lilly. Goldman estimates GLP-1 sales could skyrocket to a staggering $400 billion by then, far exceeding current Wall Street projections. Talk about blowing past expectations!
Goldman’s ambitious prediction hinges on several factors aligning perfectly – successful clinical trials, smooth manufacturing scale-up, and consistent pricing. Let’s not forget the fickle whims of the market, either.
Here’s where things get exciting, though. Goldman sees GLP-1s as much more than just weight-loss magic. They compare them to game-changers like the iPhone and Amazon’s e-commerce, platforms that revolutionized their respective industries. GLP-1s, they say, have the potential to do the same in healthcare, opening doors to a vast array of untapped markets.
Think beyond the gym; we’re talking potential applications for cardiovascular disease, sleep apnea, kidney issues, liver problems, even Alzheimer’s! Each new use case adds another potential customer to the pool, boosting Eli Lilly’s bottom line with each splash.
And it’s not just Eli Lilly basking in this potential sunshine. Novo Nordisk, another GLP-1 player, stands to benefit handsomely too. Both companies have their eyes on the prize, and the race is on to grab the lion’s share of this potentially gargantuan market.
Investors, take note! Goldman highlights three key studies to keep your radar on: SYNCHRONIZA-CVOT, REDEFINE-3, and SURMOUNT-MMO. These trials could unlock the floodgates for insurance coverage, adding millions more potential customers to the mix. Buckle up, folks, things could get interesting around 2026 and 2027, when these results roll in.
But what about Eli Lilly’s stock specifically? Can it really double in value? In Goldman’s most optimistic scenario, fueled by a dominant market share, efficient supply chains, and blockbuster-level profitability, a $1.2 trillion market valuation seems within reach. That aligns with the bullish view of billionaires like Ken Langone, who predict Eli Lilly could become the first trillion-dollar drug company ever.
Now, before we all lose our minds in a fit of stock-buying frenzy, let’s remember Goldman’s official stance is a more modest “Neutral” rating with a $600 price target. That still translates to a decent 5% potential upside, though not quite the moon-shot some might be hoping for.
The bottom line? GLP-1s are undoubtedly a game-changer in the healthcare landscape, and Eli Lilly stands to be a major beneficiary. While Goldman’s most bullish predictions might require a perfect storm of positive developments, the potential upside is undeniable. Keep an eye on those key studies, the evolving insurance landscape, and Eli Lilly’s strategic maneuvers. This story is far from over, and it could be a very profitable one for those who play their cards right.
Remember, investing always carries risk, and past performance is not indicative of future results. But if you’re looking for a potentially high-flying healthcare stock with a revolutionary product line, keep your eye on Eli Lilly. This could be one wild ride indeed.
–James
Up next: 2024 boasts of a potent cocktail of economic growth, dovish Fed policy, and tamed inflation, potentially making it a stellar year for your portfolios.
