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The analysts, who reiterated a Buy rating and $498 price target on LLY shares, said, “Orfo has shown best-in-class data for an oral GLP-1 (in obesity and T2DM – details below/inside), implying dominant positioning for LLY in yet another subsector of diabetes/obesity.”
“Recall at the December guidance call, LLY guided to 14-15% so the data are at the higher end of expectations. For T2DM, patients had up to 9.6% weight loss and an impressive 2.1% A1c reduction – also aligned with LLY’s guidance,” they wrote.
Overall, UBS believes the data looks competitive and sees orfo as underappreciated by the street, with the “data now de-risking LLY’s participation in the space.”
“The size of the oral opportunity remains a source of debate with once-weekly well-designed injectables offering a strong value proposition. However, with these data, orals clearly offer a compelling alternative and maybe will form part of the same paradigm,” the analysts concluded.
