Eli Lilly Acquires Orna Therapeutics for $2.4 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Should l Buy LLY?
Source: stocktwits
- Acquisition Agreement: Eli Lilly announced its acquisition of biotechnology firm Orna Therapeutics for up to $2.4 billion, including upfront and milestone payments, which is expected to significantly enhance Lilly's therapeutic pipeline, particularly in cell therapies.
- Positive Stock Reaction: Following the acquisition announcement, Lilly's stock rose 1.6% in pre-market trading, reflecting market optimism about the deal, which could enhance the company's future profitability and competitive position.
- Innovative Technology Potential: This acquisition will provide Lilly with access to a new class of therapies based on engineered circular RNA and proprietary lipid nanoparticles, enabling the body to generate its own disease-fighting cell therapies, potentially offering new hope for patients with limited treatment options.
- Strategic Development Focus: Lilly executives noted that while cell therapies show promise for patients with autoimmune diseases, existing complexities and costs limit their widespread application; this acquisition will help develop entirely new genetic medicines and cell therapies, driving long-term growth in the biopharmaceutical sector.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1058.180
Low
950.00
Averages
1192
High
1500
Current: 1058.180
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Upgrades and Downgrades: While specific stock names are not mentioned, such rating changes typically lead to price fluctuations in the affected stocks, prompting investors to closely monitor these adjustments for portfolio optimization.
- Market Reaction Expectations: Analyst rating adjustments may trigger short-term market reactions, especially when investor sentiment is sensitive towards certain stocks, thereby impacting overall market sentiment.
- Information Access Channels: Investors can access a comprehensive view of rating changes through Benzinga's analyst ratings page, enabling them to make more informed investment decisions.
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- Acquisition Deal Size: Eli Lilly has agreed to acquire biotechnology firm Orna Therapeutics for up to $2.4 billion, including upfront payments and subsequent milestone-based payments, demonstrating its commitment to long-term innovation in genetic medicine.
- Platform Technology Advantage: Orna is developing a novel therapy using engineered circular RNA and lipid nanoparticles, enabling patients' bodies to produce cell-based treatments for underlying diseases, which could transform existing treatment paradigms.
- Clinical Trial Readiness: Orna's lead program, ORN-252, is a clinical-trial-ready in vivo CAR-T therapy targeting CD19, aimed at treating B-cell-driven autoimmune diseases, with early studies suggesting its therapy may offer longer-lasting effects than current RNA or cell therapy platforms.
- Positive Market Reaction: Following the acquisition announcement, Eli Lilly's shares rose 1.7% in premarket trading to $1,075, reflecting market optimism regarding the deal and confidence in the company's future growth potential.
See More
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- Significant Sales Growth: Eli Lilly's GLP-1 weight-loss drugs generated $7.4 billion in Q4 sales, a 110% increase, while Zepbound's revenue surged from $1.9 billion to $4.3 billion, indicating strong market demand and product acceptance.
- Overall Performance Exceeds Expectations: The company reported a 43% increase in total revenue to $19.29 billion for Q4, with adjusted earnings per share (EPS) jumping 42% to $7.54, significantly surpassing analyst expectations of $6.67, reflecting the company's competitive edge and profitability.
- Optimistic Future Outlook: Eli Lilly projects 2026 revenue between $80 billion and $83 billion, representing a 25% growth at the midpoint, and forecasts adjusted EPS ranging from $33.50 to $35, demonstrating confidence in future market demand.
- Huge Potential for New Drug: The upcoming oral GLP-1 drug orforglipron is expected to gain approval in Q2, and its convenient administration method positions Eli Lilly to further expand its market share in the GLP-1 drug sector, reinforcing the company's leadership in weight-loss medications.
See More
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- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing that CEO Satya Nadella has lost the AI narrative and that the stock appears overpriced based on new free cash flow estimates, which may undermine investor confidence.
- Eli Lilly Acquires Orna: Eli Lilly announced the acquisition of biotech firm Orna Therapeutics for up to $2.4 billion, leading to a premarket surge in Eli Lilly and rival Novo Nordisk shares, indicating a positive market response towards biotech investments.
- Kroger's New CEO: Kroger's stock advanced nearly 7% in premarket trading after reports indicated that former Walmart executive Greg Foran will be appointed as the new CEO, having previously led Walmart's U.S. division for six years, suggesting a strategic shift for Kroger.
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- Acquisition Deal: Eli Lilly has agreed to acquire biotechnology company Orna Therapeutics for up to $2.4 billion in cash, which includes an upfront payment and subsequent payments tied to clinical development milestones, providing Lilly with a broad platform for innovation in genetic medicine and in vivo cell engineering.
- Patent Lawsuit: Novo Nordisk has filed a lawsuit against Hims & Hers, accusing the telehealth platform of infringing its rights to a key U.S. patent related to its weight loss therapy, semaglutide, claiming that HIMS unlawfully mass-marketed unapproved versions of semaglutide drugs, including the newly launched oral obesity treatment, Wegovy.
- Renewable Energy Agreements: TotalEnergies has signed two long-term power purchase agreements to deliver 1 GW of solar capacity to supply Google’s data centers in Texas, which is expected to provide 28 TWh of renewable electricity over 15 years, further solidifying its position in the renewable energy market.
- Earnings Beat: Apollo Global Management reported Q4 results with an adjusted EPS of $2.47, surpassing the average analyst estimate of $2.04, and showing growth from $2.17 in Q3 and $2.22 in Q4 2024, reflecting robust lending growth and increased management fees.
See More
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- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific stock names are not mentioned, such rating changes typically lead to price fluctuations in the affected stocks, prompting investors to closely monitor these adjustments for portfolio optimization.
- Market Reaction Expectations: Analyst rating adjustments may trigger short-term market reactions, especially when investor sentiment is sensitive towards certain stocks, thereby impacting overall market sentiment.
- Information Access Channels: Investors can access a comprehensive view of rating changes through Benzinga's analyst ratings page, enabling them to make more informed investment decisions.
See More
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- Acquisition Deal Size: Eli Lilly has agreed to acquire biotechnology firm Orna Therapeutics for up to $2.4 billion, including upfront payments and subsequent milestone-based payments, demonstrating its commitment to long-term innovation in genetic medicine.
- Platform Technology Advantage: Orna is developing a novel therapy using engineered circular RNA and lipid nanoparticles, enabling patients' bodies to produce cell-based treatments for underlying diseases, which could transform existing treatment paradigms.
- Clinical Trial Readiness: Orna's lead program, ORN-252, is a clinical-trial-ready in vivo CAR-T therapy targeting CD19, aimed at treating B-cell-driven autoimmune diseases, with early studies suggesting its therapy may offer longer-lasting effects than current RNA or cell therapy platforms.
- Positive Market Reaction: Following the acquisition announcement, Eli Lilly's shares rose 1.7% in premarket trading to $1,075, reflecting market optimism regarding the deal and confidence in the company's future growth potential.
See More
