Eli Lilly & Co (NYSE: LLY) will continue to do well even as the U.S. Federal Reserve aggressively lift rates further, says Gina Sanchez – the Chief Executive of Chantico Global.
Sanchez is bullish on its obesity drug
Last year, the pharmaceutical giant reported promising results for its experimental Alzheimer’s drug that unlocked significant upside for the stock.
Adding to it in 2022 was Mounjaro – its injectable prescription medicine for weight loss that Sanchez is the most bullish about. On CNBC’s “The Exchange”, she said:
It’s a big reason I like this stock. I think the obesity drug is even bigger [than Alzheimer’s]. It’s coming on the back of a couple of endocrine drugs that have come out but their drug is promising to top even the best results in clinical trials.
Mounjaro is the same drug that Jim Cramer has said time and again could be the biggest drug ever.
Eli Lilly can stand the coming recession
Last month, Eli Lilly reported disappointing results for its fiscal Q2 and lowered guidance for the full year. Still, showering more love on the Indianapolis-headquartered company for its diabetes drug, Sanchez said:
The drug is not only effective but it also reverses diabetes and reduces heart risk among other things that are eventually expensive down the road. So, it’s a big market for them, a huge win for Eli Lilly.
Since it’s “healthcare”, she’s convinced the demand for Eli Lilly products at large will be durable in the face of a recession.
Sanchez’ outlook is in line with UBS that also upgraded the stock recently and said it had upside to $363.