Is Eli Lilly Stock a Buy After Gaining 5% in 1 Day?

Eli Lilly (NYSE: LLY) is typically a market outperformer, but it has had a challenging year so far. Besides general market volatility, the company has dealt with clinical setbacks, lower-than-expected guidance, and the threat of tariffs. However, recent clinical developments jolted the stock.Although Eli Lilly's shares are still down by 5% year to date -- while the S&P 500 is up by 9% -- it's worth looking at the drugmaker's recent news and determining whether the market's reaction was appropriate.Eli Lilly is developing orforglipron, an investigational GLP-1 diabetes and weight loss medicine. A few weeks ago, the company reported positive phase 3 results for this candidate, but the data wasn't quite as strong as Wall Street wanted. Orforglipron induced a 12.4% mean weight loss in overweight or obese patients in a 72-week study (those with diabetes were not included in the trial), which is well below the efficacy of the company's injectable GLP-1 therapy, Zepbound, in similar patient populations. Eli Lilly's shares fell sharply after it released this data.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool