Morgan Stanley: Oral weight-loss medication Orforglipron is driving stock prices, Eli Lilly (LLY.US) can rise another 34%

Morgan Stanley released a research report, giving Eli Lilly (LLY.US) a "buy" rating with a target price of $1124, which is 34% higher than the current stock price. Eli Lilly recently announced that their orally taken weight loss drug Orforglipron performed well in Phase III clinical trials, with the drug's weight loss effects comparable to or even surpassing injectable GLP-1 drugs. Morgan Stanley sees this as a positive catalyst for Eli Lilly's stock. The trial results showed that patients taking Orforglipron on average lost 16 pounds, equivalent to 7.9% of their body weight. In comparison, the placebo group only lost 1.6%. The trial data also exceeded Eli Lilly's set weight loss targets (low target 4-5%, high target 6-7%). Recent discussions with investors by Morgan Stanley also indicate that a weight loss of over 6% will be considered a positive result. The trial results also showed that the overall safety profile of Orforglipron is consistent with currently marketed GLP-1 drugs, with the main adverse reactions being gastrointestinal such as diarrhea and nausea, and no liver safety signals were observed. In terms of market outlook, Morgan Stanley predicts that Orforglipron's sales will reach approximately $7 billion by 2033. As of Thursday's closing of the US stock market, Eli Lilly surged by 14.3% to $839.96.