Eli Lilly and Company stock surged on January 7, 2026. The rise followed two major announcements bolstering its position in the high-growth obesity drug market.
Lilly confirmed a research and license agreement with Nimbus Therapeutics. This partnership aims to develop a new oral treatment for obesity. The deal includes a $55 million upfront payment to Nimbus, with potential for $1.3 billion in milestone payments and future royalties.
Reports also emerged that Lilly is in advanced discussions to acquire Ventyx Biosciences. The potential acquisition is valued at over $1 billion. Lilly views this as a strategic move to expand its portfolio.
Investors reacted enthusiastically to the confirmed partnership and acquisition buzz, leading to a significant jump in the share price. UBS issued a bullish analyst upgrade, raising its price target to $1,250.