Missouri Attorney General Gives Eli Lilly Until November 26 to Drop 340B Claims Data Demand on Hospitals

Truist Securities raised its price target for Eli Lilly (LLY) to $1,612 from $1,376, citing strong growth in obesity and diabetes markets. LLY shares are near a 52-week high, and the company recently reported Q3 2026 earnings of $7.48 per share on $24.4B revenue, beating estimates. Truist maintains a Buy rating, highlighting Lilly's market penetration and pipeline products.

Eli Lilly reported that retatrutide showed greater A1C and weight reduction than Ozempic in a type 2 diabetes trial. The study involved 1,298 adults, with retatrutide doses of 9 mg and 12 mg compared to Ozempic's 2 mg over 80 weeks. Lilly noted average A1C reductions of 2.2 points for retatrutide versus 1.8 for Ozempic, and weight reductions of 19.5% and 20.9% versus 9.4%. Safety concerns were highlighted, with higher discontinuation rates for retatrutide due to adverse events.

Dow Jones closed at 52,163.07, down 0.59%, driven by Caterpillar's 9.5% drop due to unchanged sales forecast and tech sell-off led by Alphabet's 13.2% decline. Health care and financials provided support. GDP growth and jobless claims data were positive. Fed's inflation stance and Treasury yields influenced trading.

Alphabet's shares fell 13.2% after its quarterly report missed revenue forecasts and showed increased AI spending, dragging the Nasdaq down 1.7%. The S&P 500 and Dow Jones also declined. Investors are differentiating between companies funding AI internally and those relying on debt or cash burn. Other notable movers include Caterpillar (-9.5%), Fortinet (-20%), and Eli Lilly (+6.3%).

Eli Lilly raised its 2026 revenue outlook to $91B-$92B due to strong sales of Mounjaro and Zepbound, reporting Q3 revenue of $24.4B, up 38% YoY. Mounjaro revenue grew 65% to $10.7B, while Zepbound grew 49% to $5.35B. Non-GAAP EPS was $7.48, up 7% YoY. Lilly cited acquisition-related charges for a slight EPS forecast reduction.

Eli Lilly reported Q3 2026 revenue growth of 39%, driven by Mounjaro, Zepbound, and oncology/immunology/neuroscience portfolios. Full-year guidance raised to $91-$92B. Management highlighted Medicare GLP-1 bridge program success, international expansion, and investments in manufacturing and R&D. Non-recurring items added $900M to Q3 revenue, with $2B expected for 2026. Strategic shifts include global market restructuring and pipeline advancements in Alzheimer's and obesity treatments.