Eli Lilly stock upgraded to Buy on forecast for new diabetes drug

UBS analysts upgraded Eli Lilly's stock to Buy, stating that the pharmaceutical company's type 2 diabetes drug could become a top-selling drug.
video transcript
SEANA SMITH: All right, my play today is Eli Lilly. It's a top trending ticker here at Yahoo Finance after UBS upgraded the stock to buy and said the pharma giant's type 2 diabetes drug Mounjaro could be one of the best-selling drugs in history. Now, UBS sees peak sales of $25 billion if the drug is also approved to treat obesity. Now, clinical research reported last spring that the drug helped people lose up to 22% of their body weight.
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The stock has actually performed quite well so far this year. It's in the green compared to the losses we're seeing across the broader market here. But Dave, the $25 billion potential for this obesity drug here could mean very, very strong returns for Eli Lilly if it gets approved.
DAVE BRIGGS: It's a game changer, man. The 22% body weight means an average weight loss of 50 pounds per participant in this study. But now on the other hand, it's a hunger suppressant, so it's not something you can take, lose the weight and then stop. In general, they find that people need to stick with it. And maybe forever, unless you're going to make a major lifestyle adjustment of exercise and diet, genetics plays a role here.
Talk anecdotally to a couple of people in my area who play golf trying to get their hands on this diabetes drug used for weight loss and offering to pay four, five, six, seven times what it is it costs and can not take it in hand. This thing will fly...
SEANA SMITH: Really?
DAVE BRIGGS: --if and when approved.
LLY
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