TD Cowen Maintains Buy on Eli Lilly (LLY) After Government Deal

Core Viewpoint - Eli Lilly and Company (NYSE: LLY) is recognized as one of the best aggressive growth stocks, with a Buy rating and a price target of $960 following a government agreement to expand access to obesity medications [1][5]. Group 1: Government Agreement and Pricing - Starting April 1, 2026, Medicare beneficiaries will pay no more than $50 per month for Zepbound (tirzepatide) and orforglipron, contingent on FDA approval [2]. - The lowest dose of Zepbound will be priced at $299, with higher doses reaching up to $449, which is $50 lower than current prices [3]. - Orforglipron will start at $149 for the lowest dose, with additional doses priced up to $399 [3]. Group 2: Additional Products and Pricing Strategy - Eli Lilly will also offer Emgality (galcanezumab-gnlm), Trulicity (dulaglutide), and Mounjaro (tirzepatide) to self-pay patients at prices 50-60% lower than current list prices [4]. - The pricing deal is expected to accelerate price reductions for these medications, although the long-term impact may be modest due to potential increases in sales and patient adherence [5]. Group 3: Market Position and Future Outlook - Medicare coverage for Zepbound is viewed as a positive development for Eli Lilly, indicating potential growth in patient access and sales [5].