Truist Securities analyst Gregg Gilbert reiterated a Buy rating and $225.00 price target on Eli Lilly (NYSE: LLY) after shares rallied in the wake of Biogen's (NASDAQ: BIIB) FDA approval for its amyloid plaque-clearing antibody aducanumab for the treatment of Alzheimer’s disease (AD). The FDA granted the approval based on Biogen's single positive study under the accelerated approval pathway and the market is \taking the approval as good news for LLY’s donanemab,
The analyst believes this is warranted based on donanemab’s clinical profile. He stated "we previously noted that donanemab’s Phase 2 data are compelling and stack up favorably against BIIB’s positive Phase 3 trial for aducanumab. Our estimates and PT of $225 include risk-adjusted sales for donanemab starting in 2025, which assume that LLY will file for approval based on its completed Phase 2 study and ongoing Phase 3 study. While LLY’s baseline assumption is that two studies will be required to support approval, management has noted that regulatory requirements can shift and that it is exploring pathways for early submission. The accelerated approval of aducanumab could bode well for an early submission for donanemab."
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