After This Pharma Stock Surges To Record High, Cramer Says It's 'Going Higher Still'

Eli Lilly & Co. LLY jumped nearly 15% to a new record on Tuesday, as the biopharma's stock rode on two catalysts.

Lilly reported second-quarter earnings and revenue that were way ahead of expectations and it raised its full-year guidance.

The shares also benefited from positive data reported by Novo Nordisk A/S NVO for its weight loss drug Wegovy in a trial that evaluated it as an adjunct to the standard of care to prevent strokes and heart attacks.

CNBC Mad Money host Jim Cramer suggested Lilly's stock could have more upside from the current levels.

"I know this sounds nuts but I actually think LLY is going higher still," he said in a post on the X platform.

See Also: Best Biotech Stocks

Why It's Important: Lilly's Mounjaro injection was approved in mid-May 2022 for the treatment of adults with Type 2 diabetes. The company is now evaluating the drug for obesity. In late July the company announced results from two late-stage trials of the drug in adults with obesity that showed primary and secondary endpoints were met.

Potential FDA approval of Mounjaro for obesity could open a floodgate opportunity, given the strong demand for credible weight-loss drugs.

A Jefferies analyst Wednesday upgraded Lilly to Buy with a $615 price target.

In premarket trading, Lilly shares were up 0.08% at $522, according to data from Benzinga Pro.

Related Link: Expert Warns ‘Miracle’ Weight Loss Drug Ozempic Might Require Lifelong Use: ‘Are You Prepared…?’

Photo by rafapress on Shutterstock