Eli Lilly To Acquire Merida Biosciences

Novartis's failed cholesterol drug trial caused Amgen (AMGN) to drop 10% and Eli Lilly (LLY) to fall 2%, impacting the Lp(a) drug class. Amgen's stock is at $394.38, while Novartis (NVS) fell 14% to $137.63. Amgen reported positive Phase 3 results for a lung cancer drug, but the market focused on Lp(a) risks. Citi analysts question the Lp(a) hypothesis, affecting pipeline assets like Amgen's Olpasiran.

Eli Lilly and Bristol Myers Squibb (BMS) are investing in facilities at Generation Park in Houston, Texas. Eli Lilly committed $6.5 billion, while BMS is considering a $2.3 billion plant. The investments are driven by lower costs, tax incentives, and a focus on reshoring pharmaceutical manufacturing. Both companies expect to create hundreds of jobs. Generation Park offers infrastructure and proximity to key transportation hubs, attracting life sciences companies.

Novartis' cholesterol drug pelacarsen, developed with Ionis, failed to improve cardiovascular outcomes in a late-stage trial, despite reducing harmful cholesterol. Novartis stock fell 3%. Amgen and Eli Lilly, developing rival treatments, also saw stock declines. Analysts note the setback raises risks for the multibillion-dollar Lp(a) treatment market. Novartis faces patent expirations, and the trial's impact extends beyond the company.

Eli Lilly (NYSE:LLY) received FDA approval for Mounjaro to reduce heart attack or stroke risk in high-risk type 2 diabetes patients. The drug's sales grew 91% YoY to $9.94B in Q2. The approval may expand Mounjaro's use but is limited to a specific patient group. Lilly faces competition from Novo Nordisk's similar approvals.

J.P. Morgan raised its 2027 revenue estimate for Eli Lilly to $105.67B and EPS forecast to $50.99, maintaining an Overweight rating and $1,400 price target. The bank expects significant growth from Lilly's incretin portfolio, including Zepbound and Mounjaro, with combined sales forecasted to exceed $100B by 2030. Key risks include pricing pressure and competition.

Eli Lilly (LLY) launched Foundayo, an oral treatment for weight management and type 2 diabetes, in the UK. The drug is available via private prescription at £100-£120/month, cheaper than its injectable Mounjaro. NHS availability depends on a NICE review with no set timeline. Foundayo competes with Novo Nordisk's Wegovy pill in the UK's private market.