Eli Lilly reports promising lung cancer drug results (LLY:NYSE)

Bernstein raised its price target on Eli Lilly (LLY) to $1,450, citing expected Q3 revenue growth driven by Mounjaro sales. The firm forecasts Q3 revenue of $22.62B and EPS of $5.48, with 2027 estimates revised to $111.4B revenue and $53.09 EPS. LLY shares rose 0.41% intraday.

Eli Lilly's obesity drug retatrutide showed significant improvement in obstructive sleep apnea (OSA) symptoms in two trials, reducing episodes and potentially eliminating the need for airway pressure machines. The drug, which mimics GLP-1, GIP, and glucagon, is expected to gain FDA approval next year. Trials included 700 participants with obesity, with and without type 2 diabetes, and results were published in the New England Journal of Medicine.

Eli Lilly's investigational weight-loss drug retatrutide significantly reduced obstructive sleep apnea (OSA) severity in phase 3 trials. At 80 weeks, patients saw substantial reductions in breathing interruptions and weight loss compared to placebo. The drug also improved sleep-related impairment and reduced hypoxic burden. Eli Lilly funded the studies and participated in their design and analysis.

A phase 2b trial funded by AtaiBeckley (Eli Lilly subsidiary) tested a toad venom-derived psychedelic, mebufotenin, as a nasal spray for treatment-resistant depression. The study, published in JAMA, found that an 8 mg dose improved depression scores and was safe, with benefits lasting up to eight weeks. The drug will proceed to phase 3 trials. Critics note the antidepressant effect was modest and the study had limitations.

Eli Lilly's stock rose 1% in pre-market trading after positive clinical data for its experimental drug olomorasib in lung cancer treatment. The drug, paired with immunotherapy and chemotherapy, showed tumor shrinkage in 62% of patients. Median progression-free survival was 11.6 months. Separate study with Merck's Keytruda showed 55% of patients alive without disease progression at 18 months. Phase 3 trial results are expected in 2027.

AstraZeneca's stomach cancer drug doubled survival, Eli Lilly's lung cancer treatment showed 62% tumor shrinkage, Moderna/Merck's vaccine reduced recurrence risk by 42%, Amgen's therapy extended survival, and Roche's drug outperformed rivals. U.S. stocks fell due to AI jitters and oil price spikes, with Fed rate decisions looming. Earnings reports from Visa, Alphabet, and others are upcoming. TransDigm's stock declined despite strong sales due to higher interest rates and oil price concerns.