Eli Lilly shares gain after results beat estimates, obesity drug data

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Eli Lilly shares gain after results beat estimates, obesity drug data
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Eli Lilly and Co on Thursday posted quarterly results that beat Wall Street estimates and said its experimental obesity drug met the main goal in a late-stage study, sending shares of the drugmaker up 4%.

A sign is pictured outside an Eli Lilly and Company pharmaceutical manufacturing plant at 50 ImClone Drive in Branchburg, New Jersey, March 5, 2021. Picture taken March 5, 2021. REUTERS/Mike Segar/File Photoon Thursday posted quarterly results that beat Wall Street estimates and said its experimental obesity drug met the main goal in a late-stage study, sending shares of the drugmaker up 4%.

"The data likely validates Street thinking that tirzepatide will become a dominant player in the obesity market," Wells Fargo analyst Mohit Bansal said in a note, adding that he expects about $4 billion in peak sales.In the first quarter, sales of blockbuster diabetes drug Trulicity rose 20% and immunology drug Taltz gained 21% on strong demand despite pricing pressures.

The drugmaker is banking on its new pipeline of assets as many of its established drugs are facing patent loss. It now expects full-year adjusted earnings of between $8.15 and $8.30 per share, compared with its prior forecast of $8.50 to $8.65 per share.

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