Eli Lilly’s (LLY) tirzepatide has been removed from a shortage list, and the company is breathing a sigh of relief. According to Morgan Stanley, the FDA denied a motion for a preliminary injunction filed by two compounding groups, which aimed to block the removal of the medication. The news is seen as an “incremental positive” for Lilly.
While the FDA’s decision prevents tirzepatide from being taken off the shortage list until March 19, Morgan Stanley notes that the compounders may appeal this ruling. As a result, the firms’ plans to continue compounding tirzepatide in 503B outsourcing facilities will need to be put on hold.
The analyst firm maintains an Overweight rating and $1,146 price target for Eli Lilly shares, indicating its confidence in the company’s prospects.
Source: https://www.tipranks.com/news/the-fly/court-denying-compounders-motion-positive-for-eli-lilly-says-morgan-stanley