{"id":12289,"date":"2023-11-10T18:32:36","date_gmt":"2023-11-10T18:32:36","guid":{"rendered":"https:\/\/infundpros.com\/finance\/heres-how-eli-lilly-might-bring-a-game-changing-alzheimers-drug-to-market\/"},"modified":"2023-11-10T18:32:37","modified_gmt":"2023-11-10T18:32:37","slug":"heres-how-eli-lilly-might-bring-a-game-changing-alzheimers-drug-to-market","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=12289","title":{"rendered":"Here\u2019s how Eli Lilly might bring a game-changing Alzheimer\u2019s drug to market"},"content":{"rendered":"

As part of the MarketWatch 50 series, Eleanor Laise interviewed Dr. Daniel Skovronsky, the chief scientific and medical officer at Eli Lilly & Co.
\n LLY,
\n +0.35%<\/bg-quote>.<\/span>
\n The company\u2019s stock has soared 63% this year amid excitement for its Mounjaro treatment for Type 2 diabetes. This is a GLP-1 medication, competing with Wegovy and Ozempic, which are made by Novo Nordisk A\/S
\n NVO,
\n +0.69%<\/bg-quote>.<\/span>
\n This category of medicine leads to such dramatic weight loss that it could affect a number of other industries.<\/p>\n

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During the interview, Skovronsky talked about a different path ahead for much less expensive weight-loss drugs. He also said he was \u201d\u00a0extremely optimistic\u201d about Lilly\u2019s experimental treatment for Alzheimer\u2019s disease, which is going through clinical trials.<\/p>\n

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\n These overlooked medications could be the GLP-1 drugs of the future.
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More of the MarketWatch 50:<\/p>\n

Earnings season can be brutal<\/h2>\n

Each quarterly earnings season features myriad headlines about companies whose results beat analysts\u2019 consensus estimates for sales and earnings. You can expect a roughly 70% \u201cbeat rate\u201d every quarter. Over the long term, a \u201cbeat and raise\u201d pattern, with consensus estimates rising following the earnings reports, can support rising stock prices.<\/p>\n

But there are always exceptions. A company might miss the expectations of analysts, even after lowering the bar with its previous guidance. Or a company might be forced to reduce its stated outlook because of operational difficulties or a changing market. Here are some examples from this week:<\/p>\n

Shares of Warner Bros. Discovery Inc.
\n WBD,
\n +4.36%<\/bg-quote>
\n plunged 19% on Wednesday after the company warned that it will not be able to pay down debt as quickly as it had planned if the TV advertising market doesn\u2019t recover. Another factor that may have upset investors was a 700,000 decline in direct-to-consumer subscriptions.<\/p>\n

Warner Bros. Discovery CEO David Zaslav said during the company\u2019s earnings call that the subscription decline was tied to \u201cone of our lightest original-content schedules in years,\u201d partly resulting from the Hollywood actors strike, which ended Thursday. <\/p>\n

The company had $44.8 billion in total debt as of Sept. 30, down from $52.6 billion at the end of 2022. During the call, Zaslav said: \u201cWhile paying down debt and de-levering will remain a top priority for us, we\u2019re also now in a position to allocate more capital towards growth opportunities.\u201d<\/p>\n

WBD in its current form was created on April 8, 2022, when AT&T Inc.
\n T,
\n -0.32%<\/bg-quote>
\n divested WarnerMedia, which was merged with Discovery Inc. Here\u2019s a chart for the combined company\u2019s stock price since that date:<\/p>\n

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More examples of difficult earnings reports this week: <\/p>\n

Earnings season and IPO buyers\u2019 remorse <\/h2>\n

There was a long period during which low interest rates helped support many initial public offerings, with shares often soaring on the first day of trading. That has changed, with a slow trickle of companies going public and a tepid response in the stock market. Earnings season has underscored the regrets among investors who jumped in early for several IPOs, including Arm Holdings PLC
\n ARM,
\n +0.52%<\/bg-quote>,<\/span>
\n Klaviyo Inc.
\n KVYO,
\n +1.08%<\/bg-quote>
\n and Instacart
\n CART,
\n +3.15%<\/bg-quote>.<\/span>\n <\/p>\n

A different earnings-season tone from Disney<\/h2>\n
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Investors were in a better mood after Walt Disney Co.
\n DIS,
\n -2.81%<\/bg-quote>
\n reported its third-quarter results, including a large increase in Disney+ streaming subscriptions. The company\u2019s stock rose 7% on Thursday for its best performance in almost three years, as analysts reacted positively to Disney CEO Bob Iger\u2019s cost-cutting initiatives and the increasing profitability with price increases. <\/p>\n

Disney\u2019s stock was still down 48% from two years earlier, with dividends reinvested, according to FactSet.<\/p>\n

Therese Poletti: <\/strong>Disney CEO Bob Iger is getting his hands dirty as he focuses on studio woes \u2014 will be it enough?<\/p>\n

Positive reactions to other companies\u2019 earnings news:<\/p>\n

New tax rules and advice for tax planning<\/h2>\n
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Andrew Kesher explains changes in tax brackets and rules for 2024:<\/p>\n

Beth Pinsker explains how to use the latest information from the IRS to lower your 2024 tax bill.<\/p>\n

Stock picks<\/h2>\n
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When you see how people suffer from hurricanes or floods, you might wonder why anyone would choose to live in the affected areas. Michael Brush explains how to profit from peoples\u2019 location preferences over the long term.<\/p>\n

More about stocks:<\/p>\n