BUZZ - Jefferies raises Eli Lilly target price, says its GLP-1 business opportunities outside the U.S. are underestimated

November 9 - ** Eli Lilly (LLY.N) shares rose 2.35% in premarket trading to $1,385.56

** Jefferies raised its price target from $1,610 to $1,700, setting a Wall Street record high

** The firm said its analysis shows that, given the much larger number of wealthy individuals in that region compared to the U.S., the market's long-term size could at least match that of the U.S.

** It added that Eli Lilly stands to benefit from higher realized prices as patient doses increase, stronger profit margins outside the United States, the economic advantages of oral medication, and its broad obesity product portfolio

** "We believe one key misconception is that GLP-1 drugs are viewed as commodities, and ex-U.S. markets are just lower-priced versions of the U.S. market. On the contrary, we believe obesity is increasingly becoming a consumer-driven market, with patients differentiating therapies based on efficacy, tolerability, convenience, and price." — Jefferies

** The potential patient pool outside the United States may be about twice that of the U.S., and Eli Lilly does not need to aggressively cut prices in every market to unlock demand, although adoption in those markets will be slower than in the U.S.

** As of the previous trading day's close, the stock had risen 26% so far this year

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