Roche set to purchase liver drug company 89bio for as much as $3.5 billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2025
0mins
Should l Buy LLY?
Source: Reuters
Roche's Acquisition: Roche has agreed to acquire U.S. biotech firm 89bio for up to $3.5 billion, aiming to enhance its portfolio in liver disease treatments that align with the growing weight-loss drug market.
Pegozafermin Development: The acquisition focuses on 89bio's leading drug, pegozafermin, which is in late-stage development for treating fatty liver disease, and Roche plans to explore its use in combination with weight-loss therapies.
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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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- Valuation Concerns: With a market cap of approximately $950 billion and a price-to-earnings ratio of 46, Eli Lilly's high valuation reflects market expectations for future growth, but also subjects its stock to potential short-term declines, necessitating careful risk assessment by investors.
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- Advertising Content Issues: The FDA highlighted that the ad misleadingly suggests Wegovy offers superior weight loss benefits compared to other approved GLP-1 drugs, using phrases like 'live lighter' and 'a way forward' that imply additional benefits beyond weight loss, yet lacks evidence to support these claims, potentially leading to consumer misunderstanding and affecting market acceptance.
- Market Competition Pressure: Novo Nordisk is under pressure to regain market share from chief rival Eli Lilly and cheaper compounded alternatives, with Wegovy being the first GLP-1 weight loss pill launched in January, already prescribed to over 170,000 American patients; however, the FDA's warning may hinder its marketing and sales strategies.
- Legal Action: Novo Nordisk has also filed a lawsuit against Hims & Hers, seeking to stop the telehealth company from mass marketing compounded versions of its Wegovy pill and injections, indicating the company's proactive stance in protecting its market position and intellectual property.
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- Market Sentiment Analysis: Apple Inc (NASDAQ:AAPL) and Meta Platforms Inc (NASDAQ:META) exhibit neutral money flows, suggesting investors are taking a wait-and-see approach, which may affect their short-term performance.
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- Ad Performance: According to USA Today's Ad Meter, brands like Anheuser-Busch, Lay's, and Dunkin' resonated well with viewers again this year, indicating effective emotional and comedic messaging strategies that continue to engage audiences.
- Viewer Feedback: Some ads featuring AI tools failed to win over viewers, reflecting a limited acceptance of technology-driven advertising among consumers, suggesting that companies need to reassess their advertising strategies to improve effectiveness.
- Market Impact: The Super Bowl remains a crucial platform for brand marketing, where successful ads can significantly boost brand visibility and directly influence sales performance, prompting companies to increase their advertising budgets in future campaigns.
See More
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- FDA Regulatory Warning: The FDA issued a letter to Novo Nordisk on February 5, accusing the company of including 'false or misleading' claims in its advertisement for the newly launched Wegovy obesity drug, demanding immediate corrective actions, which could include halting all misleading ads, thereby directly impacting the company's marketing strategy.
- Competitive Market Pressure: Novo Nordisk is under significant pressure from its main competitor Eli Lilly and cheaper compounded alternatives in the rapidly growing GLP-1 market, forcing the company to accelerate its response measures to regain market share for Wegovy amid these challenges.
- Patient Usage Statistics: Despite facing regulatory hurdles, Novo Nordisk reported last week that over 170,000 American patients are currently using Wegovy, indicating a certain level of demand and potential in the market, although the advertising issues may affect its brand image and patient trust.
- Legal Action: Novo Nordisk has also filed a lawsuit against Hims & Hers, seeking to stop the telehealth company from mass marketing compounded versions of its Wegovy pills and injections, demonstrating the company's proactive stance in protecting its intellectual property and market share.
See More
