Copyright Benzinga
Eli Lilly and Company (NYSE:LLY) shares are trading higher on Monday. The pharmaceutical giant announced a significant European manufacturing expansion for oral medicine. LLY is in positive territory. See what is driving the move here. What To Know: Eli Lilly shared plans to invest $3 billion in a new manufacturing plant in Katwijk, Netherlands, within the Leiden Bio Science Park. The facility will produce oral medications and help reinforce the company's global supply chain. Eli Lilly said the facility will use advanced manufacturing tools to help produce its growing range of oral solid medicines in areas like cardiometabolic health, neuroscience, oncology and immunology. Planned technologies include full dock-to-dock automation, digital manufacturing systems, process monitoring tools and spray-dried methods that improve how the body absorbs medications. Notably, the Netherlands location will be among facilities manufacturing orforglipron, Lilly’s initial oral GLP-1 receptor agonist. The company anticipates submitting orforglipron to global regulatory bodies for obesity treatment approval by year-end. According to Eli Lilly chair and CEO David Ricks, the European expansion adds to major investments already underway in the U.S., helping the company respond more quickly to local demand and speed up distribution across Europe. Ricks also noted that the site at Leiden Bio Science Park offers several key competitive advantages. “Leiden Bio Science Park offers access to a skilled workforce, reliable infrastructure and proven pharmaceutical manufacturing capabilities. We look forward to working closely with the EU, national and local governments to create a more favorable and predictable policy environment open to fully harnessing innovative medicines to deliver faster access to patients,” Ricks said. LLY Analyst Ratings Most recent analyst updates for Eli Lilly suggest a positive outlook. On Oct. 31, Cantor Fitzgerald kept its Overweight rating and raised its price target from $925 to $985. Earlier in the month, Guggenheim reaffirmed its Buy rating with a $948 target. Morgan Stanley also maintained an Overweight rating on Oct. 3, slightly lowering its target from $1,028 to $1,023. In contrast, Berenberg took a more cautious stance, downgrading from Buy to Hold on Sept. 17 and cutting its target from $970 to $830. LLY Price Action: Eli shares are up 3.66% at $894.45 at the time of publication on Monday, according to Benzinga Pro. The stock is trading 4.4% below its 52-week high of $935.62, and is well off 52-week lows of $623.78. Read Next: Eli Lilly Extends Lead In $150B Obesity Drug Race As Novo, Pfizer Clash — Here’s How ETFs Stand To Gain Image: Shutterstock
